Cyclical and Small-Cap Stocks Rally... New York Stock Market Up 1% (Comprehensive)

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market showed strength mainly in cyclical stocks and small- and mid-cap stocks. Attention is focused on whether the leading stocks driving the market rise will shift from large IT companies to small- and mid-cap stocks.

[Image source=Reuters Yonhap News]

On the 21st (local time), the Dow Jones Industrial Average rose 316.01 points (0.93%) to close at 34,137.31, the S&P 500 index increased by 38.48 points (0.93%) to 4,173.42, and the Nasdaq index rose 163.95 points (1.19%) to close at 13,950.22.

With renewed expectations for the reopening of economic activities, all three major indices succeeded in rising for the first time in three trading days. In particular, the Russell 2000 index, which focuses on small- and mid-cap stocks, surged by 2.4%.

The New York stock market had weakened the day before due to warnings of a global expansion of COVID-19 infections, but market participants analyze that reflation trades have returned as the COVID-19 vaccination situation in the U.S. continues to improve.

On this day, President Joe Biden announced that the plan to complete 200 million COVID-19 vaccinations by May 1, as originally planned, had been achieved.

Norwegian Cruise Line, a cruise company, surged 10% due to investment bank Goldman Sachs upgrading its investment rating to 'buy.' Similarly, cruise companies Carnival and Royal Caribbean also rose more than 6% and 4%, respectively.

Airline stocks, which had fallen sharply the previous day, also rose. United Airlines, which had dropped more than 8% the day before, rebounded 3%, and American Airlines also rose 3%.

Netflix, which announced earnings below expectations the day before, plunged 7%. Electric vehicle maker Tesla rose 3.5%, but cryptocurrency exchange Coinbase fell 2.7%, showing weakness for three consecutive days.

Coupang fell 1.5%, continuing its lowest closing price record since its listing last month.

Mark Haefele, UBS Chief Investment Officer, predicted, "Volatility will increase further, but the market will ride the upward trend and rotation trades will resume."

Meanwhile, the May West Texas Intermediate (WTI) crude oil price closed down $1.32 (2.1%) at $61.35 per barrel.