Tesla surges 8%... New York Stock Market Ends January with Morning Gains

[Asia Economy New York=Special Correspondent Joselgina] The U.S. New York stock market is showing an upward trend on the morning of January 31 (local time), the last trading day of January. In particular, major tech stocks are rebounding, with Tesla jumping more than 8% compared to the previous session.

As of 11:04 a.m. on the day, the Dow Jones Industrial Average was up 10.01 points (0.03%) from the previous session, standing at 34,735.48. The S&P 500, which focuses on large-cap stocks, rose 34.96 points (0.79%) to 4,466.81, and the tech-heavy Nasdaq index increased by 291.33 points (2.12%) to 14,061.91.

By stock, tech stocks that had been hit hard are showing strength. Tesla is currently up over 8%, buoyed by Credit Suisse upgrading its investment rating from neutral to 'outperform.' Apple (1.76%), Nvidia (4.50%), and Microsoft (0.25%) are also on the rise. Netflix also rose more than 8% following Citigroup's upgrade of its investment rating from neutral to buy. The stock prices of Rivian and Lucid surged by 8% and 6%, respectively.

The market fear index fell. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) is trading at the 26 level, down 3.43% from the previous trading day. The U.S. 10-year Treasury yield, which surged to around 1.89% last week amid early tightening concerns, is currently trading at 1.79%. The 2-year yield is around 1.20%.

Economic media CNBC reported, "(The New York stock market) is showing an upward trend as it wraps up a month-long rally," adding, "The S&P 500 is rising but it is still the worst month since October 2020."

Investors remain concerned about market volatility, noting that January is still one of the worst months since 2020.

The S&P 500 has fallen nearly 7% so far this month, moving closer to a technical correction phase. The Dow and Nasdaq indices have also dropped by 4% and 11%, respectively. Investor sentiment has frozen due to growing concerns about early tightening by the U.S. Federal Reserve (Fed). Tech stocks, which are sensitive to interest rates, were hit particularly hard. The tech-heavy Nasdaq index is currently in a technical correction phase, down more than 10% from its November high last year. The small-cap Russell 2000 also showed weakness.

Last week, the New York stock market, which experienced rollercoaster trading, partially recovered its losses late in the week after the 'blue-chip' Apple released surprising earnings. Michael Aron, Chief Investment Strategist at State Street Global Advisors, said, "This kind of volatility will continue until investors digest this transitional period," but also noted, "On the other hand, the economy continues to expand and earnings are quite good." Jim Paulsen, Chief Investment Strategist at Leuthold Group, expressed concern about market volatility, saying, "This week we need to see whether the correction phase has already bottomed or if it can fall further."

This week in the New York stock market, earnings reports for Q4 last year from listed companies such as Alphabet, Amazon, and Meta (formerly Facebook), as well as the January employment report, are scheduled to be released. Remarks from officials following last week's Federal Open Market Committee (FOMC) regular meeting are also considered variables. Confirmation hearings for Fed nominees Sarah Bloom Raskin, Vice Chair for Supervision, Lisa Cook, Fed Board member nominee, and Philip Jefferson, Fed Board member nominee, will also take place. Earlier, the White House expressed concern that the December nonfarm payroll report, to be released on February 4, could confirm the impact of the Omicron spread.

Meanwhile, European stock markets showed mixed results. Germany's DAX index rose 0.78%, while the UK's FTSE 100 index fell 0.09%.

International oil prices are on the rise. The March West Texas Intermediate (WTI) crude oil price is trading at $87.25 per barrel, up 0.50% from the previous session.