Apple Leads and Tesla Pushes... New York Stock Exchange Surges in First 2022 Trading Session

US Treasury Yield Surge Boosts Dollar Strength

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market fired a 'salute' on the first trading day of the new year, setting a record high. Apple became the first company to reach a market capitalization of $3 trillion.

On the 3rd (local time), the Dow Jones Industrial Average rose 246.76 points (0.68%) to close at 36,585.06, the S&P 500 index increased by 30.38 points (0.64%) to 4,796.56, and the Nasdaq index surged 187.83 points (1.20%) to finish at 15,832.80.

The Dow and S&P 500 indices recorded all-time highs at the close, and the Nasdaq also showed strong gains despite the US Treasury yields soaring above 1.6%.

The market was led by Apple and Tesla that day. Despite the global semiconductor shortage, Apple and Tesla showed strong performances compared to competitors, showing strength from the first trading day of the new year.

Tesla's stock price closed at $1,199.78, up 13.53%. During the session, it even reached 'Twelve Hundred Tesla.'

Apple closed up 2.5% at $182.01 and set a new record by surpassing a $3 trillion market capitalization during the session. Apple is the first company worldwide to exceed a $3 trillion market cap.

Paul Nolte, portfolio manager at Kingsview Investment Management, explained, "The strength of Tesla and Apple drove the rise in the S&P 500 index."

The tech stocks' strength occurred even as the 10-year US Treasury yield surged to 1.63%. Rising Treasury yields are a burden for tech stocks. The 10-year US Treasury yield soared to its highest level since November last year. The 2-year and 5-year yields, which are sensitive to rate hikes, reached their highest levels since March 2020.

Supported by rising Treasury yields, the dollar also showed strength. The US Dollar Index rose by 0.66% that day.

With dominant expectations that the Federal Reserve (Fed) will raise interest rates three times this year, and the assessment that the Omicron COVID-19 variant risk is not significant, Treasury yields were pushed up from the first day of the new year.

Bank stocks also rose alongside the increase in Treasury yields. Wells Fargo surged 5% following Barclays' upgrade of its investment rating. JP Morgan Chase also rose 2.1%.

Despite ongoing large-scale flight cancellations during the year-end holiday period, airline stocks rose across the board. Cruise line stocks also rose significantly despite US government warnings against cruise travel.

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