NY Stock Market Rises Over 1%... Overcoming Tapering and Evergrande Crisis Rumors

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York stock market showed gains for the second consecutive day. The value of the US dollar fell sharply.

Although the Federal Reserve (Fed) signaled a reduction in asset purchases in November and the possibility of a rate hike next year, risk asset investment sentiment recovered as concerns over the bankruptcy of China's Evergrande Group eased.

On the 23rd (local time), the Dow Jones Industrial Average rose 1.48%, the S&P 500 increased by 1.21%, and the Nasdaq rose 1.04% to close.

The S&P 500 broke out of its downward trend and recorded its highest level since July.

With the Fed's commitment to normalizing monetary policy confirmed, US Treasury yields surged. The 10-year US Treasury yield rose 0.08 percentage points from the previous day, entering the 1.4% range.

The announcement by China's Evergrande Group that it would pay interest on regional debt also stabilized investor sentiment in the US market.

Fed Chair Jerome Powell also emphasized that the Evergrande crisis is limited to China and will not spread to the United States.

The dollar index plunged 0.49% compared to the previous day as the preference for safe-haven assets weakened. Although the dollar value had reached its highest level in the past month, it could not avoid weakness on this day.

Salesforce.com led the market rally by soaring 7.3% after forecasting strong earnings. IT consulting firm Accenture also rose 2% amid positive earnings outlooks.