[New York Stock Market Briefing] Three Major Indices Rebound Sharply on Powell's Optimism... Tech Companies Show Mixed Performance

The three major stock indices in the New York stock market rebounded sharply. This appears to be influenced by Federal Reserve Chair Jerome Powell's economic optimism and the February U.S. non-farm employment data.

At the close of trading on the 7th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average finished at 42,801.72, up 0.52% from the previous session, the Standard & Poor's (S&P) 500 index closed at 5,770.20, up 0.55%, and the Nasdaq Composite Index ended at 18,196.22, up 0.70%.

Powell's remarks were effective today. In a speech at the annual monetary policy forum hosted by the University of Chicago Booth School of Business in New York, Powell said, "Despite the increased level of uncertainty, the U.S. economy is still in a good position," adding, "We are in a good position where we don't need to rush and can wait for greater clarity."

As the stock market has recently undergone a steep correction due to concerns about U.S. economic growth, Powell's remarks today provided support instead. Despite the recent deterioration in consumer sentiment, the market interpretation is that bargain-hunting sentiment was stimulated by the assessment that economic growth remains solid.

Also, the February U.S. non-farm employment figures announced today fell short of expectations but did not appear to cause major shock to the market. The U.S. Department of Labor reported that non-farm employment in February increased by 151,000 from the previous month. This was below the market expectation of 160,000 but showed improvement compared to January's figures. The unemployment rate also rose slightly to 4.1%, exceeding the market expectation of 4.0%, but the market seemed to accept this as a reasonable level.

Large technology companies showed mixed performance. Apple and Nvidia rose more than 1%, and Alphabet also showed strong gains. On the other hand, Microsoft, Amazon, and Meta Platforms were slightly down.

Meanwhile, according to the Chicago Mercantile Exchange (CME) FedWatch Tool, the probability of interest rates remaining unchanged in the first half of the year rose to 18.6%. The probability of a 50bp cut fell to 24.9%, down nearly 10 percentage points compared to the end of the previous day. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) recorded 23.37, down 6.03% from the previous session.

Shin Hyun-bo, Hankyung.com reporter greaterfool@hankyung.com