Mixed NY Stock Market... Tapering Concerns Reflected Amid Job Recovery

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The strong July employment data led to mixed trends in the New York stock market.

On the 6th (local time), the Dow Jones Industrial Average rose 0.41% to close at 35,208.64, and the S&P 500 index increased by 0.17% to 4,336.54. Meanwhile, the Nasdaq index fell 0.4% to close at 14,835.76.

The mixed trends in the major indices on that day were interpreted as a result of the strong employment data.

New job additions in July reached 943,000, significantly exceeding the Federal Reserve's expected early asset purchase tapering threshold of 800,000. This heightened concerns about future rises in Treasury yields and benchmark interest rates, putting pressure on tech stocks.

On that day, the 10-year U.S. Treasury yield rose to 1.3%. Although Treasury yields had fallen to 1.12% on the 4th due to concerns over private employment contraction, the strong July employment data reversed the Treasury investment sentiment.

With employment recovery confirmed, there is also analysis suggesting that if the inflation data to be released next week continues to show strength, the Fed's monetary policy normalization could accelerate further.

The market expects the July Consumer Price Index (CPI) to be announced on the 11th to show a 5.3% increase year-over-year, slightly down from 5.4% in June. The core CPI is expected to be 4.3%.

On that day, Apple, Microsoft, Alphabet, and Amazon all declined, but Facebook rose slightly.

On the other hand, optimism about economic recovery lifted cyclical stocks.

Airline stocks such as Delta and United rose, and bank stocks joined the rally due to the effects of rising interest rates.

Robinhood, which had plunged 28% the previous day, closed up 7.9%.

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