[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market closed higher as major tech stocks showed strength for the second consecutive day alongside a decline in U.S. Treasury yields.
On the 8th (local time), the Dow Jones Industrial Average rose 57.31 points (0.17%) to close at 33,503.57, the S&P 500 index gained 17.22 points (0.42%) to 4,097.17, and the Nasdaq index increased 140.47 points (1.03%) to finish at 13,829.31.
Despite the Nasdaq's decline the previous day, key tech stocks that had shown strength continued their rally. Apple, Microsoft, and Alphabet each rose more than 1%, leading the gains. Tesla also climbed 1.9%.
Remarks by Jerome Powell, Chair of the Federal Reserve (Fed), served as a driving force behind the stock price increases.
Chair Powell projected that inflation would temporarily rise but would not be sustained. He stated, "The recovery remains uneven and incomplete," emphasizing that tangible progress is required before tapering asset purchases or raising interest rates.
Following the Federal Open Market Committee (FOMC) minutes released the day before, Powell also stressed that there would be no easing policy reduction, causing the 10-year U.S. Treasury yield to fall to 1.63% that day.
Thanks to the decline in Treasury yields, tech stocks led the market's upward trend, while bank stocks fell.
E-commerce site Etsy's stock surged 6%, but GM, which announced additional production cuts at its North American plants due to semiconductor shortages, dropped 1.2%.
May West Texas Intermediate (WTI) crude oil closed down $0.17 (0.3%) at $59.60 per barrel.
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