US Individual Rotation: Coins Down ↓ GameStop Up ↑... Treasury Bonds & Gold Strengthen (Summary)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market closed lower across the board as consumer indicators, which were feared to stimulate inflation, fell short of expectations. GameStop, which saw a surge in buying interest from individual investors amid significant fluctuations in cryptocurrency prices such as Bitcoin, soared sharply.

On the 25th (local time), the Dow Jones Industrial Average fell 81.52 points (0.24%) to close at 34,312.46, the S&P 500 dropped 8.92 points (0.21%) to 4,188.13, and the Nasdaq fell 4.00 points (0.03%) to 13,657.17.

The market was shaken by the May Consumer Confidence Index released that day, which came in at 117.2, below the Dow Jones survey experts' forecast of 118.7.

Since the Consumer Confidence Index is linked to future consumer spending expansion, concerns about inflation were alleviated.

The U.S. 10-year Treasury yield also fell to 1.56% that day. The Treasury yield dropped by 0.048 percentage points in one day, breaking below the 1.6% level. A decline in Treasury yields means a rise in Treasury prices.

Richard Clarida, Vice Chair of the Fed, indicated that the time to discuss tapering the asset purchase program would come at future FOMC meetings, while emphasizing that inflation is largely temporary.

Despite the decline in Treasury yields, major tech stocks failed to maintain their early gains and turned weaker. Boeing rose 1.4%, Royal Caribbean increased 3%, and United Airlines gained 1.5%.

As Treasury yields fell, the dollar weakened. With the dollar's weakness, international gold prices recorded $1,898, just shy of $1,900. If the current trend continues, breaking through $1,900 is likely.

Unlike the rise in gold prices, cryptocurrencies fell slightly. Bitcoin dropped 3.8% to $37,000, Ethereum fell 3.8% to the $2,500 range, and Dogecoin rose 2.2% to trade at 33 cents.

Cryptocurrency exchange Coinbase rose 7.6%. This was influenced by JP Morgan releasing its first report on Coinbase, upgrading its investment opinion to 'overweight' and setting a target price about 65% higher than the previous day's closing price at $371. Tesla fell 0.3%.

GameStop, a stock favored by individuals, surged 16%. Other 'meme stocks' such as AMC and KOSS also recorded gains of around 20%. Analysts interpret this as investors exiting the cryptocurrency market and returning to meme stock investments.

West Texas Intermediate (WTI) crude oil closed at $66.07 per barrel, up 2 cents (0.02%).

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