New York Stock Fall 3~4% Worry About Rising Interest Rate
The New York stock market plunged. The three major indexes plunged 3 ~ 4% below major support lines as worries over soaring bond yields weakened investment sentiment and large tech stocks plummeted.
The Dow Jones industrial average fell 831.83 points, or 3.2 percent. Nike (-6.8 percent), Microsoft (-5.4 percent), and Visa (-4.8 percent) fell the most.
The S&P 500 index ended falling 94.66 points, or 3.3 percent, at 2,785.68. The technology sector and telecom services sector fell 4.8% and 3.9%, respectively, leading to a decline in the index. The S&P 500 index fell for five consecutive trading days, falling below the 50-day and 100-day moving averages. The longest decline since November 2016.
The tech-heavy Nasdaq composite index fell 315.9 points, or 4.08 percent, to 7422.05. Amazon and Netflix plunged 6.2% and 8.4%, respectively. Apple and Facebook also fell more than 4 percent.
The Dow Jones Industrial Average (S&P 500) and the Dow Jones Industrial Average (Dow) The Nasdaq composite index was the worst day since June 24, 2016.
The steep rise in bond yields continued to push investor sentiment and plunged major indexes. The 10-year Treasury bond yield, which showed a decline after hitting the highest level since the previous day, rose 3.23% on the day. The surge in interest rates is raising concerns among investors that it will reduce corporate profits by increasing funding costs and slowing the economy.
The US dollar index, which shows the dollar value of the six major currencies, fell 0.15% to 95.54
The euro strengthened and lowered the value of the dollar. The USD/EUR exchange rate was 0.2436% higher than yesterday, trading at 1.1521 dollars.
The CNY/USD exchange rate also fell 0.42 percent to 112.46 yen from the previous day. The yen strengthened against the US dollar for five consecutive trading days to strengthen risk aversion, including a plunge in the market.
Oil prices have fallen. Hurricane Michael is unlikely to hit the Gulf of Mexico region. In addition, risk aversion following the sharp drop in the US market led to a drop in oil prices. The BSEE was halted by hurricanes in 42.3 percent of Gulf oil production and 31.7 percent of natural gas production. However, the hurricane is expected to avoid eastern Gulf of Mexico where oil and natural gas production facilities are concentrated.
Gold prices have risen against the US market. Concerns over bond yields limited gold’s gains. On the New York Mercantile Exchange, gold in December was up $ 1.90, or 0.2 percent, to $ 1193.40 an ounce. December prices ended 0.5 percent higher at $ 14.326 an ounce.
Dollar weakness helped gold rise. The dollar index fell 0.2% on the day. Gold prices traded in dollars move against the dollar.
In addition, the S & P 500 index fell for five consecutive trading days, leading to a decline in the stock market, which is a risky asset. However, the rise in US Treasury yields limited the rise in gold prices.