what's happening? U.S. stocks suddenly plunged: plunged over 550 points! U.S. Treasury yields outperformed dividends...
US stocks fell sharply! Long-term U.S. Treasury yields soar to a new one-year high
On Thursday, U.S. time, the three major U.S. stock indexes plummeted across the board. The Dow fell more than 550 points, or 1.75%, the S&P 500 fell 2.45%, and the Nasdaq fell more than 470 points, or 3.52%, a four-month decline. The biggest one-day drop.
The surge in US long-term Treasury yields on Thursday was the main reason for the pressure on US stocks. Among them, the 10-year US Treasury yield broke through 1.6% in intraday trading, setting a new one-year high.
The analysis believes that if this data is between 1.5% and 1.75%, it will exceed the dividend yield of the S&P 500 index, and since the national debt is basically risk-free, this will trigger the flow of funds from the stock market to the bond market.
Large technology stocks were sold off, market panic surged
Rising U.S. Treasury yields usually affect the discounted cash flow of companies in the future, so large technology blue-chip stocks have become the hardest hit areas, including Apple, Facebook and Google, which fell 2.3% to 3.3%, and Tesla plunged 8%.
The VIX index, which measures market panic sentiment, surged 35% to close to 29, indicating that investors expect US stocks to experience shocks.
On the data side, the US GDP in the fourth quarter of last year was revised from an increase of 4% from the previous quarter to an increase of 4.1%.
The number of first-time jobless claims in the United States dropped to 730,000 last week, which was lower than market expectations of 825,000. This statistic fell to the lowest level since the end of November last year.
Eurozone bond yields also rise, European stock markets are under pressure
The plunge in the US stock market spread to European stock markets. The three major European stock markets also closed down on Thursday. London and Paris stock markets closed down 0.11% and 0.24%, respectively, and Frankfurt stock markets closed down 0.69%.
The bond yields of major countries in the Eurozone have also risen sharply, and some poor corporate earnings reports have put pressure on European stock markets.
Texas oil refinery gradually resumes production of crude oil futures prices fluctuate
Crude oil prices were mixed on Thursday. US WTI light crude oil futures for delivery in April closed at $63.53 per barrel, and Brent crude oil futures for delivery in April closed slightly at $66.88 per barrel.
As the oil refinery in Texas in the United States gradually resumed production after experiencing the effects of extremely cold weather, this boosted US oil futures.
On the other hand, the market is concerned that the continued rise in oil prices may prompt major oil-producing countries to increase production, putting pressure on oil futures.
Rising U.S. Treasury Yields Suppress Gold Prices
Gold prices fell significantly on Thursday, and gold futures for delivery in April closed at $1775.4 per ounce.
Analysis believes that the rise in the yield of US long-term Treasury bonds and the favorable US economic data have suppressed the price of gold.
Producer: Ke Chengyun
Reuters: Zhang Yuhao