'Overcoming Fear' NY Stock Market Hits New Record High... Cryptocurrency Also Rises

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York Stock Exchange overcame the anxiety that surfaced the day before and reached new all-time highs again.

On the 9th (local time), the Dow Jones Industrial Average rose 448.23 points (1.30%) to close at 34,870.16, the S&P 500 index increased by 48.73 points (1.13%) to 4,369.55, and the Nasdaq index closed at 14,701.92, up 142.23 points (0.98%).

The major indices on the New York Stock Exchange had experienced a significant correction the previous day due to a sharp drop in the US 10-year Treasury yield and concerns over the spread of the COVID-19 Delta variant, but they quickly rebounded.

The rise in the indices on this day is interpreted as a result of the stabilization of US Treasury yields, which revived risk asset investment sentiment.

On this day, the US Treasury yield rose to the 1.3% range, restoring investor confidence. Even negatively affected tech stocks rose with the increase in Treasury yields. Leading stock Apple rose 1.3%.

It was analyzed that the recent excessive decline in US Treasury yields caused a short squeeze phenomenon, deepening the drop.

Treasury yields are expected to be significantly influenced by next week’s scheduled Consumer Price Index (CPI) release and the Treasury Department’s bond auction results.

The dollar strength phenomenon eased. The dollar index, which shows the value of the dollar against major currencies, fell 0.33% to 92.102 on this day.

Cryptocurrencies, which had fallen due to risk asset avoidance, also rose. Bitcoin rose 1.9% to $23,519, Ethereum fell 0.28% to $2,132, and Dogecoin traded up 4.5% at 21.9 cents.

By individual stocks, Didi Chuxing, which faced strong regulatory pressure from the Chinese government, rose 7%, reversing its decline after five trading days. Full Truck Alliance, also targeted by regulations along with Didi Chuxing, succeeded in rising 5%. Large Chinese companies such as Alibaba and Baidu also turned to gains.

Coupang surged 5% to the $42 range. Coinbase also rose 3.9%, surpassing its IPO reference price of $250.

The August West Texas Intermediate (WTI) crude oil price closed up 2.2% at $74.56 per barrel.

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