NY Stock Market Ends Mixed Amid Delta Variant Concerns and Rising Treasury Yields

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Baek Jong-min] Major indices on the New York Stock Exchange closed mixed, reflecting concerns over the spread of the Delta variant of COVID-19 and strength in the U.S. labor market.

On the 9th (local time), the Dow Jones Industrial Average fell 106.66 points (0.30%) to close at 35,101.85, while the S&P 500 index dropped 4.17 points (0.09%) to finish at 4,432.35.

The Nasdaq index rose 24.42 points (0.16%) to close at 14,860.18.

On that day, the market reacted sensitively to the spread of COVID-19 and the number of new job openings in the U.S. The number of job openings for June, announced at 10 a.m., exceeded 10 million for the first time ever, causing U.S. Treasury yields to rise.

After the June job openings announcement, U.S. Treasury yields started to climb, rising above 1.3%.

The strong employment data further fueled tapering debates. Raphael Bostic, President of the Atlanta Federal Reserve, stated that if the labor market continues to improve in its current state while inflation reaches the target, asset purchase reductions could begin sooner.

Morgan Stanley forecasted that "the 10-year Treasury yield is forming a double bottom at 1.125% and is rising, with expectations to increase further by the end of the year."

Financial stocks such as Goldman Sachs, BOA, and Citigroup were collectively strong due to the rise in Treasury yields.

Negative news from China also pressured the market.

As China implemented lockdown measures to curb the spread of COVID-19 infections, West Texas Intermediate (WTI) crude oil fell $1.80 (2.64%) to close at $66.48 per barrel. Brent crude also plunged by 2.3%.

It is analyzed that the strengthening of the dollar, driven by rising U.S. Treasury yields, also contributed to the decline in oil prices. The dollar index recorded its highest level in three weeks that day.

Along with the drop in oil prices, the energy sector also fell by about 1%.

Moderna, a COVID-19 vaccine maker, surged 17.1% following news that Australia officially approved the use of its vaccine.

Tesla rose 2.1%, supported by an upward revision of its target price by investment bank Jefferies. Although the Nasdaq rose, most core tech stocks declined except for Alphabet.

Coinbase soared 9% ahead of its Q2 earnings announcement scheduled for the next day and amid rising Bitcoin prices.

Warren Buffett's Berkshire Hathaway rose only 0.5% despite positive Q2 earnings news.

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