[New York Stock Market] Tesla and Netflix Soar Over 10%... All Close Higher, Nasdaq Up 3.41%

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] The U.S. New York stock market closed higher across the board on January 31 (local time), the last trading day of the month. Notably, major tech stocks rebounded, with Tesla and Netflix soaring more than 10% compared to the previous session.

However, for the entire month of January, the Nasdaq index fell 9% and the S&P 500 index dropped 5%, marking the worst month since the pandemic in March 2020. Netflix's stock price plunged nearly 30% this month alone.

On this day in the New York stock market, the Dow Jones Industrial Average closed at 35,131.86, up 406.39 points (1.17%) from the previous session. The large-cap focused S&P 500 index rose 83.70 points (1.89%) to 4,515.55, and the tech-heavy Nasdaq index ended the day at 14,239.88, up 469.31 points (3.41%).

By individual stocks, tech stocks that had been hit hard showed strength. Tesla closed up 10.68%, buoyed by Credit Suisse upgrading its investment rating from neutral to 'overweight.' Netflix also rose more than 11% following Citigroup's upgrade from neutral to buy. Apple (2.61%), Nvidia (7.21%), Microsoft (0.88%), Amazon.com (3.89%), and Intel (2.28%) also ended the day higher. Rivian's stock price surged more than 15%.

As the market showed an upward trend, the market fear index, which had been rattled by tightening uncertainties last week, also declined. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) recorded 24, down 10.67% from the previous trading day. The U.S. 10-year Treasury yield, which had surged to around 1.89% last week amid early tightening concerns, is currently trading around 1.78%. The 2-year yield fell to about 1.18%.

However, on a monthly basis, it remains the worst month since the pandemic. The early tightening concerns around the Federal Reserve's Federal Open Market Committee (FOMC) regular meeting this month significantly froze investor sentiment. Although the S&P 500 index closed higher on this day, narrowing the monthly decline to 5.2%, it still could not avoid the largest drop since March 2020’s 12.5%. The tech-heavy Nasdaq index also showed a 3% rise on the day but fell more than 9% for the month, marking the worst month since March 2020. The Dow Jones index's monthly decline was 3.32%.

Art Hogan, Chief Market Strategist at National Securities, said, "Between the trading volume we witnessed and the tremendous volatility confirmed in the market, it felt like volatility was peaking." Economic media CNBC reported, "The New York stock market ended a gloomy January on a positive note," but added, "The S&P 500 index still had its worst month since March 2020." Despite double-digit gains on the day, Netflix's monthly decline approaches 30%. Spotify fell 17%. Tesla and Nvidia slid 11.36% and 16.75%, respectively, over the month of January.

Michael Aron, Chief Investment Strategist at State Street Global Advisors, said, "This kind of volatility will continue as 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 that market volatility may persist, saying, "This week we need to see whether the correction phase has already bottomed or if it could fall further."

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

Oil prices continued to rise amid growing geopolitical risks such as concerns over Russia's invasion of Ukraine. On this day, March West Texas Intermediate (WTI) crude oil prices on the New York Mercantile Exchange rose $1.33 (1.53%) from the previous session to $88.15 per barrel. This is the highest level since October 7, 2014. Oil prices have surged more than 17% in January, rising about $12.94 per barrel.