New York Stock Market Attempts Rebound After Pause... Truth Social Up 18%

Christopher Waller Fed Board Member Scheduled to Speak
Focus on February PCE Inflation Data Released on 29th

The three major indices of the U.S. New York stock market are rising in early trading on the 27th (local time). After three consecutive trading days of declines, bargain buying has flowed in, attempting a rebound. The market is awaiting the release of the February Personal Consumption Expenditures (PCE) price index scheduled for the 29th.

As of 9:37 a.m. at the New York Stock Exchange (NYSE) on the day, the Dow Jones Industrial Average is trading at 39,588.44, up 0.78% from the previous close. The large-cap focused S&P 500 index is up 0.55% at 5,232.3, and the tech-heavy Nasdaq index is up 0.31% at 16,366.13.

By stock, U.S. pharmaceutical company Merck is up 4.37% on news that its pulmonary arterial hypertension treatment Winlevi has been approved. Trump Media & Technology Group (TMGT), the parent company of Truth Social, a social networking service (SNS) founded by former U.S. President Donald Trump, is surging 18.24% on its second day of trading. It rose 16.1% the previous day.

Despite a pause in the market this week, the New York stock market is expected to close higher for the month of March and the first quarter. As of the previous day's closing price, the S&P 500 index has risen 2.1% this month. The Nasdaq and Dow Jones Industrial Average have increased by 1.4% and 0.7%, respectively. For the first quarter, the S&P 500 jumped 9.1%, while the Nasdaq and Dow Jones Industrial Average rose 8.7% and 4.2%, respectively.

Robert Shine, Chief Investment Officer (CIO) of Blank Shine Wealth Management, said, "Valuation can bring us back to a kind of reality," but added, "This rally can continue in the long term, and momentum is quite strong due to liquidity."

The market is awaiting remarks from Christopher Waller, a member of the U.S. Federal Reserve Board, scheduled for the afternoon. Investors are expected to look for clues about the future path of interest rates from Waller's comments. Opinions among Fed officials on rate cuts this year are divided. Austan Goolsbee, President of the Federal Reserve Bank of Chicago, expects three cuts, while Raphael Bostic, President of the Atlanta Fed, expects one.

On the 29th, the February core Personal Consumption Expenditures (PCE) price index will be released. It is the inflation indicator most closely watched by the Fed. The core PCE price in February is expected to have risen 0.3% month-over-month, a smaller increase than January's 0.4%. However, the annual rate is expected to remain steady at 2.8%, the same level as January. With the Consumer Price Index (CPI) exceeding experts' expectations for two consecutive months in January and February this year, attention is focused on the PCE price trend. However, since the 29th is Good Friday, a holiday before Easter, market reactions to the inflation data are expected to be confirmed after the New York stock market opens on April 1.

Government bond yields are moving slightly lower. The U.S. 10-year Treasury yield, a global bond yield benchmark, and the U.S. 2-year Treasury yield, sensitive to monetary policy, are trading down 1 basis point (1 bp = 0.01 percentage points) each at 4.22% and 4.58%, respectively.

International oil prices are falling on news of increased U.S. inventories. West Texas Intermediate (WTI) crude is down $0.59 (0.7%) to $81.03 per barrel, and Brent crude is down $0.70 (0.8%) to $85.55 per barrel.