Strong Earnings Boost... NY Stock Market Rebounds Sharply for Two Consecutive Days (Update)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York stock market recovered from early-week sharp declines and closed higher. Strong corporate earnings also supported the rise in stock prices.

On the 21st (local time), the Dow Jones Industrial Average rose 286.01 points (0.83%) to close at 34,798.00, the S&P 500 index increased by 35.63 points (0.82%) to 4,358.69, and the Nasdaq index surged 133.08 points (0.92%) to finish at 14,631.95.

The market, which had plunged on the 19th due to concerns over the spread of the Delta variant, recorded gains for two consecutive days, successfully recovering the losses. All three major indices approached their all-time highs within about 1%.

On the day, the US 10-year Treasury yield rose to the 1.3% range during trading, reflecting expectations for economic recovery. The US Treasury yield had fallen to 1.18% the previous day but rose for two consecutive days thereafter.

Financial stocks showed strength due to the rise in interest rates. West Texas Intermediate (WTI) crude oil prices rose more than 4%, leading energy-related stocks to increase by over 3% collectively.

Travel-related stocks such as airlines and hotels, which had been weak due to concerns over the spread of the Delta variant, also succeeded in rising by over 3% collectively.

Strong corporate earnings also drove the stock market gains.

Restaurant chain Chipotle Mexican Grill rose more than 11% on news that its quarterly sales surpassed pre-COVID-19 levels. Chipotle posted the largest gain among S&P 500 companies that day.

Coca-Cola rose 1.3% after raising its annual earnings outlook.

Johnson & Johnson rose 0.6% after raising its sales forecast, expecting Janssen’s COVID-19 vaccine sales to reach $2.5 billion this year.

Netflix fell 3% as its quarterly earnings per share (EPS) missed market expectations and subscriber forecasts fell short of hopes.

Among the 73 S&P 500 companies that reported earnings by that day, 88% exceeded market expectations.

Semiconductor stocks also showed notable gains. The Philadelphia Semiconductor Index surged 3% that day. Nvidia rose 4.2%.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as the fear gauge, fell 1.82 points (9.22%) to 17.91, reflecting stabilized investor sentiment.

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