[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market rebounded as inflation concerns eased.
On the 13th (local time), the Dow Jones Industrial Average rose 433.79 points (1.29%) to close at 34,021.45, the S&P 500 index increased by 49.46 points (1.22%) to 4,112.50, and the Nasdaq index rose 93.31 points (0.72%) to finish at 13,124.99.
Although the major indices on the New York stock market did not fully recover the sharp 2% decline from the previous day, bargain hunting buying pressure helped recover some of the losses.
The focus of the market that day was on Tesla. This was because Elon Musk, Tesla's CEO, announced the suspension of Bitcoin vehicle payment the day before.
Tesla's stock price showed an initial rise at the opening but fell by 3% to close at $571 as losses increased over time.
Tesla has fallen 14% this week, marking its worst weekly performance since March.
Most cryptocurrencies, including Bitcoin, were also weak. The news that the U.S. Department of Justice and the IRS investigated Binance, the world's largest cryptocurrency exchange, further worsened investor sentiment.
Bitcoin fell 9.5% to the $49,000 range, Ethereum also dropped 9% to the $3,700 range, and Dogecoin fell 16% to trade at 39 cents. Stocks such as MicroStrategy and Square, which purchased Bitcoin, also struggled. Cryptocurrency exchange Coinbase also plunged 6%.
On this day, the strength of the Dow index constituent stocks was notable. Among the index components, only Chevron fell by 0.64%. This was the exact opposite of the previous day when most stocks declined.
Financial stocks such as JPMorgan Chase rose collectively on expectations of rising interest rates.
Coupang, which announced its first earnings since listing the day before, plunged 9.3% to close at $32.04.
The employment data released that day was also positive, and the Producer Price Index (PPI) rose, further increasing expectations for economic recovery.
The U.S. Department of Labor announced that the Producer Price Index (PPI) for April rose 0.6% compared to the previous month. This exceeded the Dow Jones consensus estimate of a 0.3% increase. It was the largest increase since statistics began in November 2010. The March PPI had risen 4.2% year-on-year.
Last week, new unemployment claims decreased by 34,000 from the previous week to 473,000.
Despite the positive indicators, the 10-year U.S. Treasury yield fell by 0.044 percentage points to 1.659%. A decline in Treasury yields means a rise in bond prices. The dollar index rose 0.04% to 90.725.
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