[New York Stock Market] Rises on Rebound Buying... S&P 500 Index Up 0.14%

The New York stock market closed higher ahead of the weekend. A rebound buying spree occurred due to oversold conditions.

[Photo by Reuters Yonhap News]

On the 8th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 34,576.59, up 75.86 points (0.22%) from the previous session. The Standard & Poor's (S&P) 500 index rose 6.35 points (0.14%) to 4,457.49, and the Nasdaq index closed up 12.69 points (0.09%) at 13,761.53.

However, all three major indices ended the week lower. The Dow fell 0.75% for the week, while the S&P 500 and Nasdaq declined 1.29% and 1.93%, respectively. The S&P 500 and Nasdaq turned negative for the first time in three weeks.

Recently, U.S. economic indicators performed well, raising concerns that the Federal Reserve (Fed) may continue its rate hike policy longer than expected, putting downward pressure on stock prices. Fed officials have expressed a preference for holding rates steady in September to observe the situation further, but their views have been somewhat mixed in subsequent meetings.

U.S. interest rate futures traders expect the Fed to hold rates steady at the September meeting with over a 90% probability. The chance of a rate hold at the November meeting is about 54%. The probability of a rate hike of 0.25 percentage points or more at the November meeting is around 47%.

Within the S&P 500, energy, utilities, communications, financials, technology, and consumer staples stocks rose, while real estate, industrials, and healthcare stocks declined. Apple shares, which had fallen more than 6% over two days due to concerns over China's iPhone ban, rose 0.35% on the day. Electronic signature company DocuSign's shares fell more than 3% despite earnings beating expectations.

Shares of Kroger, a U.S. supermarket chain, rose more than 3% after its adjusted second-quarter earnings per share exceeded expectations and it agreed to pay fines to authorities over poor management of opioid drug sales. As oil prices rose, energy-related stocks such as Marathon Petroleum, Phillips 66, and Valero Energy also gained about 3-4%.

New York market experts reported that investors are worried about further Fed tightening. Tom Lee of Fundstrat Research told MarketWatch, "In recent conversations with institutional investors, it was clear that investors are becoming increasingly nervous," adding, "Above all, they were concerned that economic momentum has improved enough to extend the Fed's rate hike path."

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) fell 0.56 points (3.89%) to 13.84 compared to the previous session.