New York Stock Market Mixed Amid Tech Stock Rebound... Apple Up Over 2%

The three major indices of the U.S. New York stock market showed mixed movements during the morning session on the 18th (local time), amid a rebound in technology stocks including Apple and a rise in Treasury yields.

At around 10:45 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was trading at around 37,247, down 0.05% from the previous close. The S&P 500, which focuses on large-cap stocks, rose 0.47% to 4,761, while the tech-heavy Nasdaq index recorded a 1.10% increase to 15,018.

Currently, within the S&P 500, stocks related to technology, communications, industrials, and consumer discretionary sectors are rising, while energy, healthcare, utilities, financials, and real estate sectors are declining. Apple, which had been weak since the beginning of the year, rose 2.8% from the previous close after Bank of America (BoA) upgraded its investment rating and raised its target price. Major semiconductor stocks such as Nvidia, AMD, Intel, and Qualcomm are also up more than 2%, buoyed by better-than-expected earnings from Taiwan's TSMC. Tesla, which has cut prices for the Model Y in major markets, showed a decline of more than 1% again today.

[Image source=Reuters Yonhap News]

Investors are closely watching Apple's stock rebound, Treasury yield movements, economic indicators, and the future direction of the Federal Reserve's (Fed) monetary policy. In particular, Apple's stock rebound revived investor sentiment centered on technology stocks today. TSMC's earnings also supported the semiconductor rally. Amid growing caution over early rate cut expectations in the market, these technology stocks are being seen as safe havens. Jay Hartfield, CEO of Infrastructure Capital Management, mentioned the rise in Treasury yields today and said, "When interest rates rise, technology stocks are a safe haven."

The weekly initial jobless claims released today fell to the lowest level since September 2022. According to the Department of Labor, the number of new weekly jobless claims as of the 13th decreased by 16,000 from the previous week to 187,000. This is interpreted as indicating that the labor market remains robust. Retail sales for December, released the previous day, also showed stronger-than-expected levels, dampening market expectations for a rate cut in March. However, the Fed's Beige Book released the previous day contained content indicating signs of cooling in the overheated labor market that had been fueling inflation.

According to the CME FedWatch tool, the interest rate futures market currently reflects about a 57% chance that the Fed will keep rates unchanged in January and cut rates by at least 0.25 percentage points at the Federal Open Market Committee (FOMC) meeting in March. This is down from the 70% range a week ago. Additionally, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, is expected to speak on monetary policy today.

In the New York bond market, the benchmark 10-year U.S. Treasury yield rose slightly to around 4.12%. The 2-year yield, which is sensitive to monetary policy, is trading around 4.35%. The dollar index, which measures the value of the U.S. dollar against six major currencies, is slightly up at 103.6. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as Wall Street's fear gauge, fell more than 3% to 14.3. February West Texas Intermediate (WTI) crude oil prices are trading above $73 per barrel, up more than 1% from the previous close.

European stock markets are rising across the board. Germany's DAX index is up 0.85%, the UK's FTSE index is up 0.17%, and France's CAC index jumped 1.18%.