[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market maintained a cautious stance ahead of the inflation indicator announcement. Amid the stock market slump, U.S. Treasury bonds were strong again.
On the 8th (local time), the Dow Jones Industrial Average fell 30.42 points (0.09%) to close at 34,599.82, the S&P 500 index rose 0.74 points (0.02%) to 4,227.26, and the Nasdaq index rose 43.19 points (0.31%) to close at 13,924.91.
The major indices of the New York stock market have not shown significant fluctuations this week as they are cautious about the May Consumer Price Index (CPI) to be announced on the 10th.
Morgan Stanley, in an investor memo on the day, forecasted that concerns about inflation rising beyond control are excessive, and that the consumption expansion caused by COVID-19 could soon disappear.
Morgan Stanley stated, "There are signs that consumers are hesitating to purchase cars or furniture due to price increases."
The news that the U.S. trade deficit decreased for the first time this year, announced on the same day, also led to similar analysis. It is attributed to a reduction in consumer spending in the U.S., which caused a decrease in imports of consumer goods, leading to the reduction of the trade deficit.
Supported by this analysis, U.S. Treasury prices rose that day. The yield on the 10-year U.S. Treasury note fell by 0.03 percentage points to 1.538%. During the session, the yield dropped as low as 1.51%. A decline in Treasury yields means a rise in Treasury prices.
Although the Nasdaq index rose, most major tech stocks such as Alphabet, Amazon, and Microsoft closed lower. Tesla's stock price closed down 0.25% despite news of increased sales in China in May.
'Meme stocks' continued their rotation. Following the theater chain AMC, healthcare-related stock Clover Health surged 85% to close after rising 32% the previous day. The hamburger chain Wendy's also rose 25% as individual investors poured in.
The July West Texas Intermediate (WTI) crude oil price rose 82 cents (1.2%) to close at $70.05 per barrel. This is the first time WTI has closed above $70 since October 2018.
Fueled by the rise in oil prices, most energy-related stocks such as ExxonMobil showed strength.
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