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The New York stock market closed with a rise. The bond market showed signs of uncertainty at the news that former U.S. President Donald Trump had an advantage in this year's presidential election, but the stock market responded calmly by rebounding.
On the 1st (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed trading at 39,169.52, up 50.66 points (0.13%) from the previous day.
The S&P 500 index closed at 5,475.09, up 14.61 points (0.27%) from the previous day, and the Nasdaq index closed at 17,879.30, up 146.70 points (0.83%) from the previous day.
The New York stock market ended the first trading day of the second half of this year with an upward trend. This week, the New York Stock Exchange will be closed on Independence Day (the 4th), a federal holiday, and the trading day will be shortened to 3.5 days due to early closing the day before (the 3rd) (closing at 1 p.m. local time).
On this day, the stock market was influenced by the U.S. manufacturing Purchasing Managers Index (PMI) for June in the early hours of trading.
The June manufacturing PMI announced by the Institute for Supply Management (ISM) recorded 48.5. This figure is lower than Yonhap Infomax's market consensus (screen number 8808) of 49.2. Additionally, last May's manufacturing PMI was also below 48.7.
PMI measures industry contraction and expansion based on 50. The manufacturing PMI fell below '50' in May, suggesting a contraction in the industry, but the degree of contraction became stronger in June.
Immediately after the news that the manufacturing PMI continued its contraction phase came out, major stock indexes immediately expanded their decline. At one point, the NASDAQ index widened its decline to -0.4%.
This is why investment sentiment, especially in technology stocks, weakened as U.S. Treasury yields increased even though the manufacturing PMI was sluggish. Technology stocks usually become less attractive when bond interest rates rise.
However, as the afternoon progressed, the stock index recovered from its decline and soon returned to an upward trend. Regardless of the bond market, optimistic forecasts for corporate performance stimulated buying sentiment.
There is an analysis that Trump has an advantage over Biden in this year's presidential election, but the stock market is focusing more on optimism rather than 'Trump risk'.
“Artificial intelligence (AI) may seem like just another fad, but we believe it has much more to offer,” said Kevin Philip, partner at Bel Air Investment Advisors. “We are advancing the technology,” he said.
King Lip, chief strategist at investment advisory firm Baker Avenue Wealth Management, said, “The weakening trend in technology stocks is not very noticeable. Some may argue that it is accelerating.” He added, “Technology stock prices will decline due to seasonal weakness and profit-taking sales from September until the presidential election.” “It may slow down, but the current valuation is at an appropriate level,” he said.
Among individual stocks, Tesla's stock price soared more than 6% on this day, attracting attention. Expectations have grown stronger ahead of the announcement of second quarter vehicle delivery (sales) results.
Tesla plans to announce delivery volume for the second quarter (April to June) on the 2nd.
Microsoft (MS), Apple, and Amazon also led the market with their stock prices rising by more than 2%. Nvidia ended the day on a strong note, and Broadcom rose 2.20%.
Apple rose despite UBS's investment opinion expressing concern that its growth would be limited due to the expansion of market share by Chinese smartphone companies.
Cruise operators Carnival and Royal Caribbean fell 5.4% and 1.9%, respectively, on news that Hurricane Beryl made landfall in the Caribbean as a Category 4 storm.
Boeing's stock price rose more than 2% on the news that it had decided to reacquire Spirit Aerosystems, the world's largest aircraft structure manufacturer, from which it was spun off 20 years ago, for $4.7 billion.
Pet supply company Chewy's stock price was on an upward trend before the market opened when it was revealed that meme stock investor Keith Gill (nickname: Roaring Kitty), who became famous after the GameStop stock price surge, acquired a 6.6% stake, but fell 6%. It's closed.
By industry, the technology industry rose 1.3% and the materials industry fell 1.55% on this day. The industry fell by 1.1% and the real estate industry also fell by 0.99%.
According to the FedWatch tool of the Chicago Mercantile Exchange (CME), the probability that the Federal Reserve will cut the benchmark interest rate in September at the end of the day was reflected at 65.3%. The probability of a freeze in September was 34.7%.
The Chicago Board Options Exchange (CBOE) volatility index (VIX) pointed to 12.2, down 0.22 points (1.77%) from the previous day.
Cryptocurrency leader Bitcoin (BTC) recovered $63,000 on the first trading day of July.
Cointelegraph analyzed, “Bitcoin is still trading in a range ranging from $56,552 to $73,777, but the fact that it attempted to form a low at $58,402 on June 24 is a positive signal for buyers.”
The media then added strength to their optimism, saying, "If history repeats itself, the speed of Bitcoin's recovery may accelerate in July. According to Coinglass data, there has been a sharp rebound every time in July since the monthly negative end in June."
According to Coinglass, which has been tracking Bitcoin's monthly rise since 2013, if Bitcoin fell in June, it rose by an average of 7.42% in July.
However, Cointelegraph said, "Some analysts have warned that the rally could face a headwind, with Mt. Gox redemptions starting in early July could be a drag on the rise. Creditors may be unable to recoup Bitcoin's massive gains following the hack." “There are expectations that an exit may be rushed for this reason, which could cause selling pressure and cause Bitcoin to fall,” he pointed out.
According to CoinMarketCap, as of 8:17 a.m. on July 2 (Korean time), the price of Bitcoin (BTC) is recording $62,930, up 0.18% from 24 hours ago.
Bitcoin rose from a low of $62,495.51 on the day to a high of $63,777.23.
