The U.S. New York Stock Exchange (NYSE), which had been sluggish in the new year, rebounded for two consecutive days.
The Dow Jones 30 Industrial Average of the New York Stock Exchange closed at 35768.06, up 305.28 points (0.86%) from the previous day on the 9th (local time). The Standard & Poor’s 500 index rose 65.64 points (1.45 percent) to 4587.18, while the technology-oriented NASDAQ index rose 295.92 points (2.08%) to 14490.37, respectively. CNBC reported that the NASDAQ index, which rose sharply for two consecutive days following the previous day (1.28% rise), rebounded more than 8% from its lowest point on the 27th of last month.
Analysts say that the influx of low-priced buying centered on big tech stocks, which have fallen sharply, is the driving force behind the high rise in major indexes. Facebook’s parent company Meta, which plunged 35% until the previous day after last week’s earnings announcement, rose 5.4%, smiling for the first time in a long time, while semiconductor company NVIDIA (6.4%), e-commerce company Shopify (5.4%), and video conferencing platform Zoom Video (4.8%) also rose sharply. The 10-year U.S. government bond rate, which had soared amid the Fed’s notice of a rate hike, fell from up to 1.97% the previous day to around 1.95% on the same day, reducing the burden on technology stocks.
Atlanta Federal Reserve Bank President Rapiel Vostick and Cleveland Federal Reserve President Loretta said in public remarks that “all options are ready,” but showed some skepticism over the possibility of a 0.5 percentage point rate hike in March seems to have relieved investors. The so-called reopening stocks, including aviation and travel, also rose en masse as expectations for normalization from the COVID-19 incident increased, with several states, including New York State, drastically easing the mandatory indoor masks.
However, the prevailing view is that the stock market is likely to show great volatility in the future depending on price indicators and the Fed’s monetary tightening strength. Investors are expected to decide on a stance in the future as they watch the Ministry of Labor’s January Consumer Price Index (CPI) announcement on the 10th.
