[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market closed lower ahead of major companies' earnings announcements and the Consumer Price Index (CPI) release.
U.S. leading semiconductor company Intel announced it would actively cooperate with the Biden administration's semiconductor promotion policy but plunged due to the impact of competitor Nvidia's server semiconductor announcement. Electric vehicle maker Tesla returned to the $700 range after about a month.
On the 12th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 55.20 points (0.16%) to close at 33,745.40, the S&P 500 index dropped 0.81 points (0.02%) to 4,127.99, and the Nasdaq index fell 50.19 points (0.36%) to 13,850.00.
Although the major indices on the New York stock market declined that day, the losses were not significant.
Federal Reserve Chairman Jerome Powell mentioned the day before that the Fed would do everything possible to support the economy until recovery is complete and that there would be no rate hikes this year even if the economy recovers quickly, but this did not have a major impact on the market.
Chairman Powell stated that interest rate hikes would occur only if inflation above 2% is sustained for a considerable period, but the U.S. 10-year Treasury yield slightly rose to 1.669%. During the day, the 10-year yield even reached 1.685%.
The factor shaking U.S. Treasury yields that day was the Treasury Department's bond auction. The auction held that day attracted average-level demand. Despite concerns that the March Consumer Price Index (CPI) to be announced the next day could drive bond yields higher, demand for the auction was considerable. Demand for 3-year Treasury bonds was solid, but demand for 10-year bonds was slightly lower than usual.
By stock, voice recognition technology company Nuance Communications rose 16% following the announcement of its acquisition by Microsoft for $16 billion.
Semiconductor company Nvidia surged 5.6% on expectations of positive first-quarter earnings and the announcement of server chips. In contrast, Intel plunged 4% as Nvidia's server chip announcement acted as a negative factor.
China's Alibaba rose 6.5% as the government-related negative factor, which had weighed on its stock due to large-scale antitrust fines imposed by Chinese authorities, was perceived to have been resolved.
Tesla rose 3.69%, recovering to $700, supported by news of a target price upgrade.
May West Texas Intermediate (WTI) crude oil prices closed at $59.70 per barrel, up $0.38 (0.6%).
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
