[New York Stock Market] Mixed Close Ahead of Powell's Remarks... Nasdaq Down 0.11%

The major indices of the U.S. New York stock market closed mixed and near flat on Monday, the 6th (local time), as investors awaited the upcoming congressional hearing of Federal Reserve (Fed) Chair Jerome Powell, the February employment report, and other economic indicators scheduled for this week.

On the New York Stock Exchange (NYSE) that day, the Dow Jones Industrial Average closed at 33,431.44, up 40.47 points (0.12%) from the previous session. The S&P 500, which is centered on large-cap stocks, rose 2.78 points (0.07%) to 4,048.42. Meanwhile, the tech-heavy Nasdaq index closed down 13.27 points (0.11%) at 11,675.74.

Within the S&P 500, stocks related to technology, telecommunications, utilities, and consumer staples rose, while materials, discretionary consumer goods, and real estate sectors declined. Apple rose 1.85% after Goldman Sachs raised its target price to $199. Snap jumped 9.48% on news that the U.S. Congress is pushing a bill to ban TikTok. Tesla fell more than 2% after news that it lowered the U.S. sale prices of the Model S and Model X. This is Tesla’s second price cut this year. Norfolk Southern dropped more than 2.6% following news over the weekend of another freight train derailment in Ohio.

[Image source=Reuters Yonhap News]

Investors on this day closely watched movements in government bond yields while awaiting Chair Powell’s upcoming hearing, the employment report, and the Beige Book release scheduled for this week. Chair Powell is set to appear before the Senate and House at 10 a.m. on the 7th and 8th respectively to deliver his semiannual monetary policy report and answer lawmakers’ questions. Depending on the tone of Powell’s remarks, the market is expected to fluctuate again. He is anticipated to emphasize the need for continued tightening to lower inflation, while avoiding direct comments on specific interest rate hike sizes.

This week also features the release of key indicators important for rate decisions, including the February employment report and the January Job Openings and Labor Turnover Survey (JOLT). Particularly, following the January employment report that exceeded expectations by nearly three times and heightened tightening concerns, it is crucial to see if the February report shows a similar trend. Nonfarm payrolls for February are estimated to have increased by 225,000. The Beige Book, to be released on the 8th, is attracting attention as it contains the Fed’s economic assessment. The January report noted stagnation or slight declines in growth across six regions, concluding that overall growth was flat. Pahad Kamal, Chief Investment Officer (CIO) at Kleinwort Hambros, said, "It is the calm before the storm," and predicted, "The market will remain quite quiet until the employment report is released."

Government bond yields showed volatility but rose slightly near the market close. In the New York bond market, the benchmark 10-year U.S. Treasury yield stood at around 3.97%. The 2-year yield, sensitive to monetary policy, was trading near 4.88%. The dollar index, which measures the value of the U.S. dollar against six major currencies, moved slightly lower around the 104 level.

Corporate earnings announcements are nearing completion. According to Oppenheimer, 496 companies listed on the S&P 500 have reported quarterly earnings so far. Their quarterly revenues increased by 5.6% year-over-year, while net profits declined by about 3%.

Oil prices rose on news that Saudi Arabia raised prices for crude oil deliveries to Asia and Europe. On the New York Mercantile Exchange, April West Texas Intermediate (WTI) crude oil closed at $80.46 per barrel, up 78 cents (0.98%) from the previous session. This marks the fifth consecutive day of gains.

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