[New York Stock Market] Weekly Loss Fully Recovered... Nasdaq Up 3.13% on Strong Apple Earnings

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] The three major U.S. stock indices in New York all surged on the 28th (local time), ending a rollercoaster week. Not only did they recover all the losses from earlier in the week caused by early tightening concerns, but they also broke a three-week losing streak. In particular, corporate earnings, including a surprise report from Apple, were credited with boosting market sentiment.

On this day in the New York stock market, the Dow Jones Industrial Average closed at 34,725.47, up 564.69 points (1.65%) from the previous day. The large-cap-focused S&P 500 index rose 105.34 points (2.43%) to 4,431.85, and the tech-heavy Nasdaq index ended trading at 13,770.57, up 417.79 points (3.13%).

By individual stocks, Apple, which announced record-breaking earnings after the previous day's close, finished up 6.98%. Tesla and Nvidia also rose 2.08% and 4.08%, respectively. Nikola jumped 7.32%. Visa showed an increase of over 10% after releasing its earnings. Mastercard also rose more than 9% with earnings surpassing market expectations. On the other hand, Caterpillar closed down in the 3% range due to margin pressure warnings, and Chevron fell in the 5% range due to earnings below market expectations.

The market opened lower as U.S. inflation data, which surged to the highest level in 40 years, was released just before the opening bell. This raised concerns that the Federal Reserve's early tightening stance might gain more momentum.

According to the U.S. Department of Commerce, the Personal Consumption Expenditures (PCE) price index rose 5.8% year-over-year in December last year, marking the largest increase since June 1982. The core PCE price index, which the Fed prefers when monitoring inflation trends, rose 4.9% compared to a year earlier, the highest year-over-year increase since 1983. Additionally, December consumer spending (-0.6%) showed weakness despite the year-end season, further fueling market concerns. The University of Michigan's consumer sentiment index for January (67.2) also recorded its lowest level since November 2011.

What changed the market mood was corporate earnings. In particular, the surge in the stock price of Apple, the company with the largest market capitalization, led the overall market. Apple's fourth-quarter revenue for last year, released after the previous day's close, was $123.9 billion, an 11% increase year-over-year and the highest quarterly revenue ever recorded. Louis Lee, chief trader at investment management firm Emres Advisors, said, "Apple was the savior of the market."

On this day, the Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as Wall Street's "fear index," fell 9.28% to 27.66.

The New York stock market showed a rollercoaster pattern this week due to early tightening concerns surrounding the Federal Open Market Committee (FOMC) regular meeting, but the rebound on this day appeared to recover the week's losses. The Dow and S&P 500 indices closed the week up 1.3% and 0.8%, respectively. The Nasdaq index was flat at 0.01%. CNBC reported, "With the Dow and S&P 500 finishing the week with gains, the three-week losing streak has ended."

Ma Wingwei, Chief Investment Strategist at BMO Asset Management, told CNBC, "The large intraday moves show the challenges the market currently faces with tightening," adding, "The market's hypersensitive reactions to new news will continue for the time being."

International crude oil prices rose for the sixth consecutive week. On this day at the New York Mercantile Exchange, March West Texas Intermediate (WTI) crude oil prices closed at $86.82 per barrel, up $0.21 (0.2%) from the previous session. WTI prices rose about 2% just this week.