The New York stock market rose ahead of key indicators as Treasury yields showed a downward trend.
At the New York Stock Exchange (NYSE) on the 29th (US Eastern time), the Dow Jones 30 Industrial Average finished trading at 34,852.67, up 292.69 points (0.85%) from the battlefield. The Standard & Poor’s (S&P) 500 index closed at 4,497.63, up 64.32 points (1.45%) from the battlefield, and the Nasdaq index closed at 13,943.76, up 238.63 points (1.74%) from the battlefield.
Investors have been paying attention to the downward trend in government bond yields ahead of the release of the Personal Consumption Expenditure (PCE) Price Index and Employment Report coming out this week.
It will be interesting to see if the PCE price index and employment reports coming out this week will confirm trends in inflation and employment.
However, the fact that the government bond interest rate fell as the job announcement and the consumer confidence index showed a downward trend gave relief to the stock price.
The Conference Board’s consumer confidence index for August, which shows consumer confidence in the US, was 106.1, far below the market’s expectation of 116.0 and below the previous revision of 114.0.
Job postings in July were 8.82 million, down significantly from 9.2 million the previous month, and a new low in 28 months. Market expectations were 9.5 million. The number of voluntary retirees showing confidence in the labor market was 3.54 million, down 253,000 from the previous month. This is the lowest level in two and a half years, suggesting that the tightness of the job market is easing.
The 10-year Treasury bond yield fell to around 4.11%, down 8bp from the previous day, and the 2-year Treasury bond yield was traded around 4.91%, about 15bp behind.
Recently, the sharp rise in government bond yields, reflecting concerns about further tightening by the Fed, has put a burden on the stock market.
Nvidia and Tesla’s shares rose more than 4% and 7%, respectively, leading to the rise of technology stocks.
The rise of risky assets such as Bitcoin and Ethereum also had a positive effect on stock prices.
On this day, a U.S. court issued a ruling overturning the decision of the U.S. Securities and Exchange Commission (SEC) to reject an application to convert Grayscale’s bitcoin trust to an exchange-traded fund (ETF), which will allow a spot bitcoin exchange-traded fund (ETF) to be approved. The road is open.
Bitcoin rose more than 7% and Ethereum more than 5% on the news. Shares of Coinbase, a virtual currency exchange, also rose by about 15%. Meanwhile, U.S. home prices showed an upward trend.
According to S&P CoreLogic Case-Shiller, the June home price index rose 0.7% month-on-month on a seasonally adjusted basis. Home prices in the 10 major cities and 20 major cities both rose 0.9% month-on-month on a seasonally adjusted basis.
All 12 sectors in the S&P 500 index rose. Telecommunications, consumer discretionary, and technology stocks rose more than 2%, leading the rise.
Best Buy shares rose more than 3% on the news that the quarterly results were better than expected.
Shares of AT&T and Verizon, telecommunications companies, rose 4% and 3%, respectively, on the news that Citi upgraded their investment opinions from ‘neutral’ to ‘buy’.
Oracle’s share price also rose more than 3% as UBS upgraded its rating from ‘neutral’ to ‘buy’.
New York stock market experts said that the market is digesting the materials that have been released so far in the absence of materials.
“The market is getting a little bit of a pull back from its year-to-date highs and is getting a lot going,” Chris Barto, investment analyst at Fort Pete Capital, told MarketWatch. We are reallocating our investments,” he said.
HSBC’s Max Ketner, multi-asset strategist, told CNBC that the cooldown in today’s data suggests that it’s a strategically good time to enter risky assets, especially equities.
According to the Chicago Mercantile Exchange (CME) FedWatch, at the close of the Federal Funds (FF) interest rate futures market, the probability that the Fed will keep rates unchanged at its September meeting is 86.5%, and the probability of raising them by 0.25 percentage points reached 13.5%. The probability of raising interest rates by more than 0.25 percentage point by the November meeting is 47.9%, down from 62.3% the day before.