[New York Stock Market] Amazon Soars 13.5%, Nasdaq Closes Up 1.58%

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[Asia Economy New York=Special Correspondent Joselgina] The U.S. New York stock market, which had been shaken by the so-called 'Meta shock,' successfully rebounded on the last trading day of the week, the 4th (local time), buoyed by the Amazon effect. The Nasdaq index, centered on tech stocks, rose more than 1% that day, closing the week with a gain of over 2.3%. The January employment report, which the market had been concerned about, also showed positive results, causing government bond yields to surge.

On that day, the Nasdaq index closed at 14,098.01, up 219.19 points (1.58%) from the previous trading day. The S&P 500 index, focused on large-cap stocks, also ended the day at 4,500.53, up 23.09 points (0.52%). The Dow Jones Industrial Average turned downward just before the close, falling 21.42 points (0.06%) to 35,089.74.

Among individual stocks, tech stocks led by Amazon showed strong gains. Amazon soared 13.51% compared to the previous session, leading the entire market. The quarterly earnings and increased cloud sales announced after the previous day's close were credited with attracting investor sentiment. The Amazon effect effectively overshadowed the Meta shock that had frozen the market the day before.

Tesla closed up 3.61% from the previous session, regaining the '900Sla' level. Morgan Stanley released a report predicting Tesla's market share in the U.S. would expand, confirming a low-price buying trend. Nvidia (1.55%), Microsoft (1.56%), and Netflix (1.13%) also showed upward trends.

Meta Platforms, the parent company of Facebook, which had shaken the market the day before, closed up 0.11%. Similarly, Snap and Pinterest, which had shown double-digit declines the previous day, rose 58.8% and 11.1%, respectively, on this day. However, Ford's stock, which disclosed disappointing earnings, slid 9.70%.

Investors focused on the employment report released that day. Nonfarm payrolls in January increased by 467,000, far exceeding market expectations of a 150,000 increase. Initially, the market had anticipated a significant slowdown or decrease in job growth in January due to the spread of the Omicron variant last month.

Bond yields surged on the stronger-than-expected employment data. The U.S. 10-year Treasury yield surpassed the 1.9% level, reaching its highest point since December 2019. The 2-year yield, sensitive to monetary policy, hit the 1.3% range.

Some speculate that despite the spread of the new Omicron variant of COVID-19, the strong employment figures may accelerate the pace of monetary tightening by the U.S. Federal Reserve (Fed). However, since tightening concerns had already been reflected in the market, the impact on this day was confirmed to be less significant than expected.

With the New York stock market recovering from the Meta shock in just one day, the Nasdaq index closed the week with a 2.38% gain. The S&P 500 rose 1.55% for the week, and the Dow Jones increased by 1.05%. CNBC reported, "The second weekly gain since 2020," adding that "the S&P 500 closed its best week of the year." The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as Wall Street's 'fear index,' fell more than 4%, settling around the 23 level.

International oil prices hit their highest level in seven years. On the New York Mercantile Exchange, March West Texas Intermediate (WTI) crude oil prices surged $2.04 (2.26%) to $92.31 per barrel. This is the highest closing price since September 29, 2014.

Geopolitical risks, including the increased possibility of Russia's invasion of Ukraine, along with a snowstorm in Texas and other U.S. Midwest regions raising concerns about oil supply disruptions, pushed the oil market higher that day. The market expects oil prices could soon reach $100 per barrel. Since the beginning of the year, WTI prices have risen nearly 22%.