NY Stock Market Mid-Year Trading Closes... Ultimately Smiled as Treasury Yields Fell (Comprehensive)

[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York Stock Exchange showed mixed trends as they closed the half-year trading session.

On the 30th (local time), the Dow Jones Industrial Average rose 210.22 points (0.61%) to close at 34,502.51, the S&P 500 index increased by 5.70 points (0.13%) to 4,297.50, while the Nasdaq index fell 24.38 points (0.17%) to close at 14,503.95.

[Image source=Reuters Yonhap News]

The half-year gain for the S&P 500 was 14.49%. The Dow and Nasdaq indices also rose by 12.73% and 12.54%, respectively.

On the day, the 10-year U.S. Treasury yield stood at 1.47%, having dropped to as low as 1.43% during intraday trading.

The Treasury yield surged from 0.9% at the beginning of the year to 1.6% amid inflation concerns but showed a downward trend and relative stability in the second quarter.

Although the U.S. economy is recovering rapidly, doubts about long-term growth have emerged, causing long-term yields to continuously decline compared to short-term yields, and the expected inflation rate has also decreased.

There were forecasts that the Federal Reserve (Fed) would raise interest rates in 2023 and highlighted the possibility of tapering asset purchases, but the bond market remained strong due to funds flowing into safe assets.

Inflation concerns are also easing. On the day, CNBC reported that lumber futures, which had a significant impact on rising inflation, plunged 42% in June alone, marking the largest drop ever. Lumber futures also fell 18% compared to the end of the previous year.

The trend in Treasury yields also reversed the direction of the stock market.

While the rise in Treasury yields in the first quarter led to a decline in tech stocks, the recent fall in Treasury yields has driven gains in tech stocks. As the rally in economically sensitive stocks, which benefit greatly from the reopening of economic activities, slowed, companies like Microsoft and Amazon hit record highs.

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