[New York Stock Market] Rising Close Awaiting US CPI... Nasdaq Up 2.11%

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Major indices of the U.S. New York stock market closed higher on Friday, the 9th (local time), as investors awaited the upcoming Consumer Price Index (CPI) to be released next week. Amid ongoing concerns over tightening by the central bank, the Federal Reserve (Fed), expectations that inflation has peaked and a rebound buying following three weeks of declines led the S&P 500, focused on large-cap stocks, and the Nasdaq, centered on tech stocks, to recover their 50-day moving averages.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 32,151.71, up 377.19 points (1.19%) from the previous session. The S&P 500 rose 61.18 points (1.53%) to 4,067.36, and the Nasdaq increased by 250.18 points (2.11%) to 12,112.31. On this day, the S&P 500 closed above its 50-day moving average level of 4,030.22 for the first time since the 31st of last month. The Nasdaq also surpassed its 50-day moving average of 12,065.64.

All 11 sectors of the S&P 500 advanced. Technology stocks showed gains due to rebound buying. Meta Platforms, the parent company of Facebook, rose 4.39% from the previous close. Apple increased by 1.88%, and Amazon by 2.66%. Tesla jumped 3.60% on news that it is considering establishing a lithium refining plant for electric vehicle batteries in Texas. Semiconductor stocks such as Nvidia (+2.84%), AMD (+3.23%), and Intel (+2.31%) also performed well.

Chevron closed up 2.58% due to rising oil prices. ExxonMobil (+1.68%), Marathon Oil (+2.89%), Occidental Petroleum (+1.75%), and Schlumberger (+3.93%) also rose together. Additionally, electronic signature software company DocuSign surged more than 10% on better-than-expected earnings. Virgin Galactic fell 4.46% after Bernstein downgraded its investment rating to sell.

Investors closely watched Fed officials' remarks while awaiting the August CPI release on the 13th. They are expected to confirm whether inflation has peaked through next week’s inflation data and gauge the pace of future Fed rate hikes.

Fed Governor Christopher Waller predicted a significant rate hike this month during a speech at the Institute for Advanced Studies (IAS) in Vienna, Austria. He said, "I support another policy rate increase ahead of the next meeting," adding, "The pace of hikes depends on economic data." This aligns with recent remarks from Fed Chair Jerome Powell and other officials emphasizing efforts to curb inflation. Former Fed Vice Chair Richard Clarida also forecasted in an interview with CNBC that the Fed would raise rates to 4%. Esther George, President of the Kansas City Fed, stressed the need for continued aggressive tightening, noting, "Policy rates are still relatively low, and the balance sheet is approaching $9 trillion."

The market widely expects the Fed to implement a third consecutive giant step (0.75 percentage point rate hike) at this month’s meeting. CNBC reported that this would be the fastest tightening pace since the early 1990s. According to the Chicago Mercantile Exchange (CME) FedWatch tool, federal funds (FF) futures currently price in over a 90% chance of a giant step in September, up significantly from 57% a week ago.

Amid a flood of hawkish comments from Fed officials, volatility in the New York stock market continues. Some analysts still diagnose the market as being in a bear phase.

Scott Minerd, Chief Investment Officer (CIO) of global investment bank Guggenheim Partners, warned that the New York stock market is in a bear market and that large-scale sell-offs could occur. David Donabedian, CIO of CIBC Private Wealth US, said, "This week’s market recovery showed that the economy has sustained resilience based on economic indicators," but added, "It will take time to reach the next bull market," indicating the bottom has not yet been reached.

The bond market saw little change. In the New York bond market, the yield on the U.S. 10-year Treasury note moved slightly higher to around 3.31%. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as Wall Street’s "fear gauge," fell more than 3% to the 22 level compared to the previous session.

Oil prices surged sharply as the dollar weakened. On the New York Mercantile Exchange, October West Texas Intermediate (WTI) crude oil closed at $86.79 per barrel, up $3.25 (3.89%) from the previous session.

Meanwhile, the dollar declined on the day. The Dollar Index, which measures the dollar’s value against six major currencies, dropped from the 110 level on the 7th to the 108 level on this day.

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