Fear Fades in NY Stock Market... Strong Earnings Ease Inflation and Supply Chain Collapse Concerns

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The major indices of the New York stock market closed higher again, supported by strong corporate earnings. The strong earnings seem to be alleviating concerns about inflation and supply chain disruptions.

On the 19th (local time), the Dow Jones Industrial Average rose 198.70 points (0.56%) to close at 35,457.31, the S&P 500 index increased by 33.17 points (0.74%) to 4,519.63, and the Nasdaq index jumped 107.28 points (0.71%) to 15,129.09.

All major indices approached their all-time highs closely. The S&P 500 is down 0.58% and the Dow Jones is down 0.49% compared to their record highs. The Nasdaq index is 1.78% below its all-time high but does not appear to be under pressure for further gains.

Although the yield on the US 10-year Treasury note rose back to the 1.6% range, it did not prevent the rise of technology stocks.

Johnson & Johnson (J&J), Procter & Gamble, and Travelers, which reported earnings on the day, posted results exceeding expectations.

Netflix's earnings, released after the market closed, also surpassed market expectations thanks to the Squid Game effect.

According to FactSet, as of the 19th, 10% of the companies included in the S&P 500 index had reported earnings, and about 80% of them posted results exceeding estimates.

With the third-quarter earnings season just beginning, expectations are growing that more companies will deliver better-than-expected results.

The first Bitcoin futures exchange-traded fund (ETF), ProShares 'Bitcoin Strategy ETF' (BITO), closed up 4.7%.

The Wall Street Journal interpreted that investors were paying close attention to how supply chain disruptions might affect corporate earnings, but the better-than-expected results improved investor sentiment.

Rama Biller, portfolio manager at Biller & Co., diagnosed that strong corporate earnings helped ease fears that inflation and supply chain issues would negatively impact earnings.

He explained, "It cannot be said that the fog has lifted or the fears have disappeared, but at least reasonable positive data has been confirmed."

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