U.S. stocks fell sharply! Long-term U.S. bond yields soared to a one-year high
On Thursday, U.S. time, the three major U.S. stock indexes plummeted across the board, including the Dow Jones Industrial Average, or 1.75%, the S&P 500 Index, 2.45%, and the Nasdag Index, which fell more than 470 points, or 3.52%, the largest one-day decline in four months.
The surge in long-term U.S. Treasury bond yields on Thursday was the main reason for the pressure on U.S. stocks, with 10-year U.S. bond yields exceeding 1.6% in intraday trading, hitting a new one-year high.
The analysis believes that if this figure is between 1.5% and 1.75%, it will exceed the dividend yield of the S&P 500 index, and because treasury bonds are basically risk-free, it will trigger funds to flow from the stock market to the bond market.
Large-scale technology stocks were sold off, and panic in the market surged.
Rising yields on U.S. bonds usually affect the future cash flow discount of enterprises, so large technology blue chips have become the hardest hit areas, including Apple, Facebook and Google falling 2.3% to 3.3%, and Tesla plummeting 8%.
The VIX index, which measures market panic, surged 35% to close to 29, indicating that investors expect U.S. stocks to experience shocks.
On the data side, the GDP of the United States was revised from a month-on-month growth of 4% to a growth of 4.1% in the fourth quarter of last year.
The number of first-time jobless claims in the United States fell to 730,000 last week, down from the market expectation of 825,000, a figure that fell to the lowest level since the end of November last year.
Eurozone bond yields also rose, European stock markets are under pressure
The sharp fall in U.S. stock markets affected European stock markets, and the three major European stock markets also closed down on Thursday, including London and Paris stocks closing down 0.11% and 0.24%, respectively, and Frankfurt stock markets closed down 0.69%.
Yields on major eurozone countries’ treasury bonds have also soared, and some bad corporate financial reports have put pressure on European stock markets.
Texas refineries in the United States are gradually returning to production. Crude oil futures prices rise and fall.
Crude oil prices rose and fell on Thursday, with U.S. WTI light crude oil futures for April delivery closing at $63.53 a barrel, and Brent crude oil futures for April delivery closing slightly at $66.88 a barrel.
U.S. oil futures boosted U.S. oil futures as refineries in Texas gradually resumed production after experiencing extreme cold weather.
On the other hand, the market is worried that the oil price will continue to rise or promote the main oil-producing countries to increase production, which puts pressure on oil futures.
U.S. bond yields rose, suppressing gold prices
Gold prices fell significantly on Thursday, with gold futures for April delivery closing at $1775.4 per ounce.
Analysis believes that the rise in the yield of long-term U.S. Treasury bonds and the favorable U.S. economic data have depressed the price of gold.