US Stock Market Takes a Breather After Six Days of Gains

Korea Economic Daily

Summary

It was reported that the US stock market took a breather after rising for six consecutive trading days.
The Chief Market Strategist at Carson Group stated that the recent rebound in the US stock market is a bull rally.
Ryan Detrick emphasized that the S&P 500 index has risen nearly 20%.

Treasury Yields Rise Slightly After Stabilizing the Previous Day

Wall Street Strategist: "Current Market is a Bull Rally, Not a Bear Market Rally"

After starting with a decline and rebounding to rise for six consecutive trading days, the US stock market took a breather on the 20th (local time), starting with a decline.

At 10 a.m. Eastern Standard Time, the S&P 500 was down 0.3%, and the Nasdaq Composite Index fell 0.4%. The Dow Jones Industrial Average was down 0.1%.

US Treasury yields, which surged and then plunged the previous day, rose slightly again. The 10-year Treasury yield rose 6 basis points (1bp = 0.01%) to 4.52%, and the 30-year Treasury, which had exceeded 5% and then fell to the 4.9% range, rose 5bp to 4.996%. The Bloomberg Dollar Spot Index showed little change against major currencies.

Home improvement company Home Depot's stock rose more than 2% as it maintained its annual performance outlook. The company's Chief Financial Officer (CFO), Richard McPhail, stated that there are no plans to raise prices despite tariff increases.

Nvidia fell 1.8% to $133, while Tesla traded up 0.6% at $344. Palantir fell 0.5%.

According to Bloomberg, the US stock market has entered a technically overbought zone, with its value increasing by $8.6 trillion (approximately 11,997 trillion won) over the past six days of gains.

The US stock market, which traditionally sees declines in May, showed unexpected strength, with the S&P 500 index rising 18 times over the past 22 trading days. According to Bloomberg data, such a rise has been rare, occurring only eight times since 1980.

Carson Group's Chief Market Strategist Ryan Detrick told CNBC that the rebound in the US stock market should be taken seriously. He emphasized that "the S&P 500 index has risen nearly 20% over the past 27 trading days," and this is not a bear market rally or a short-covering rally, but a bull rally.

There are no special economic indicators scheduled for release today, but remarks from Federal Reserve Board (Fed) officials are expected.

Guest Reporter Kim Jung-ah kja@hankyung.com