Cryptocurrency Rise and Government Bond Yield Drop... New York Stock Market 'Smiles' (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Baek Jong-min] The major indices of the New York stock market all rose together, supported by the recovery of cryptocurrency prices, a decline in Treasury yields, and gains in tech stocks.

On the 24th (local time), the Dow Jones Industrial Average rose 186.14 points (0.54%) to close at 34,393.98, the S&P 500 index increased 41.19 points (0.99%) to 4,197.05, and the Nasdaq index jumped 190.18 points (1.41%) to finish at 13,661.17.

As inflation concerns somewhat eased, the U.S. 10-year Treasury yield fell to 1.603%, restoring investor sentiment. The Treasury yield, which had risen to 1.7% last week, is now expected to re-enter the 1.5% range.

Fed Governor Lael Brainard maintained her outlook that while short-term inflationary pressures will increase, they will be temporary.

The rebound in cryptocurrencies, which had plunged the day before, also boosted risk asset investment sentiment. Bitcoin, which had dropped to $31,000 the previous day, surged to the $39,000 range on this day.

Bitcoin-related stocks also showed strength. Tesla's stock price rose more than 4.4%. Investment bank Wells Fargo issued its first report on Tesla that day, giving a 'neutral' investment rating and a target price of $590. Wells Fargo forecasted that Tesla's vehicle deliveries would continue to perform well.

The stock price of Coinbase, a cryptocurrency exchange, rose only 0.4% despite a positive evaluation from Goldman Sachs. Goldman Sachs gave Coinbase a 'buy' rating with a target price of $306, which is 36% higher than the current level.

Major tech stocks such as Apple, Microsoft, and Amazon all rose about 1%.

Cyclical stocks also showed gains. United Airlines rose 1%. Cruise line Carnival increased 2.7%, and Norwegian Cruise Line, which announced the resumption of operations, surged 4.7%. MGM and American Airlines also joined the upward trend.

Oil prices were strong as expectations for an Iran nuclear deal diminished. The July West Texas Intermediate (WTI) crude oil price rose $2.47 (3.9%) to close at $66.05 per barrel. This is the highest level since May 17.

This content was produced with the assistance of AI translation services.