NVIDIA 2.7%, Apple 1.4%, Microsoft 2.4%, Amazon.com 3.6%,
Meta 2.2%, Google’s Alphabet 2.1%, Netflix 2.0%,
AMD plummeted by 2.5% and ARM by 5.7%, but Tesla soared by 3.9%.
[소셜밸류=김완묵 기자] The New York stock market is falling sharply as the Trump effect fades due to concerns about inflation and the resulting rise in government bond yields. There appears to be a gradual departure from the frantic Trump trade.
As of 11:40 a.m. on the New York Stock Exchange (NYSE) on the 15th (local time), the Dow Jones Industrial Average is recording 43,430, down 320 points (0.73%) from the previous level.
The Standard & Poor’s (S&P) 500 index is at 5,874, 74 points (1.26%) lower than the previous day, and the Nasdaq Composite Index, centered on technology stocks, is at 18,715, down 392 points (2.05%) from the previous day. The Philadelphia Semiconductor Index is at 4,852, down 152 points (3.04%) from the previous day.
Major stocks include Nvidia, which plunged 2.7%, Apple 1.4%, Microsoft 2.4%, Amazon.com 3.6%, Meta 2.2%, Google’s Alphabet 2.1%, Netflix 2.0%, AMD 2.5%, and ARM 5.7%. there is. However, Tesla is soaring 3.9%.
U.S. Treasury yields are running high today. As of 11:29 a.m. local time, the 10-year yield is showing 4.461%, up 0.041 percentage points (4.1 bp) from the previous day, and the 2-year note is showing 4.316%, up 0.022 percentage points (2.2 bp) from the previous day.
Prior to this, as of 10:30 a.m. local time, the Dow Jones Industrial Average was recording 43,464.86, down 286.00 points (0.65%) from the previous level. The Standard & Poor’s (S&P) 500 index showed 5,881.63, 67.54 points (1.14%) lower than the battlefield, and the Nasdaq Composite Index centered on technology stocks showed 18,753.74, 353.91 points (1.85%) lower than the battlefield. The Russell 2000 index, which consists of small and mid-cap stocks, also fell by about 1%.
According to foreign media and Yonhap News, the market is falling after Federal Reserve Chairman Powell acknowledged concerns about inflationary pressure and hinted at the possibility of easing the pace of interest rate cuts.
Chairman Powell said in an invited lecture sponsored by the Dallas Federal Reserve Bank the previous day, “With inflation showing signs of continuing, Federal Reserve officials do not know where the inflation trend will lead.” He added, “The base interest rate must be lowered slowly and carefully over the next few months. “It is highly likely that we will do it,” he said. He added, “The U.S. economy is not sending any signals that we need to rush to cut interest rates,” adding, “Thanks to the strong economy, we can make decisions cautiously.”
As the selection of the Trump administration’s second term cabinet gathers pace, Trump nominated Robert F. Kennedy Jr., a member of the Kennedy family, a symbol of the U.S. Democratic Party, as Secretary of Health and Human Services. Kennedy Jr. ran as an independent candidate in the 2024 presidential election, but then dropped out and declared his support for Trump.
As Kennedy Jr., who is a vaccine skeptic and has been critical of federal health agencies, was nominated as Secretary of Health and Welfare, the stock prices of related stocks seem to have taken a hit. COVID-19 vaccine maker Moderna’s stock price fell by more than 6%, Pfizer’s fell by more than 4%, and AstraZeneca and Novavax fell by more than 2%. Large pharmaceutical company Eli Lilly’s stock price fell by more than 3%, and GSK’s stock price fell by more than 2%.
After news emerged that the Trump administration’s transition team was considering a plan to abolish the Biden administration’s electric vehicle subsidies, Rivian’s stock price, a latecomer electric vehicle company, fell back by more than 4%. However, Tesla stock price rose by 3%. Palantir, an American big data processing company classified as a defense stock, jumped more than 6% after announcing that it would move its stock from the New York Stock Exchange to the Nasdaq Global Select Market.
Domino’s Pizza, a pizza delivery chain, saw its stock price rise by more than 2% on the news that Warren Buffett’s Berkshire Hathaway had acquired a stake. Berkshire announced that it purchased 1.3 million shares, equivalent to a 3.6% stake in Domino’s Pizza, for $550 million. U.S. semiconductor equipment company Applied Materials’ stock price fell more than 7% after its earnings forecast fell below expectations.
New economic indicators released today heightened concerns about inflation. According to the U.S. Department of Commerce, U.S. retail sales in October amounted to $718.9 billion, up 0.4% from the previous month on a seasonally adjusted basis. This figure exceeds market expectations (0.3%↑). Compared to the same period last year, it increased by 2.8%. Compared to the previous year-on-year increase of 1.7% in September, the increase has increased.
Hotter-than-expected consumption suggests that the U.S. economy and employment are strong and that inflation could rebound. The Fed’s justification for lowering interest rates becomes weaker. The U.S. import price increase rate hit the highest level since last April, turning upward for the first time in three months.
The U.S. Department of Labor announced that the import price index in October rose 0.3% compared to the previous month. It is the highest since last April (0.9%↑). Previously, in September, it fell 0.4% compared to the previous month, recording the largest decline since December of last year. It also fell 0.3% last August.
Sam Stovall, chief investment strategist at CFRA Research, said of the market today, “Investors are taking a breather and considering whether it is worth going further.” “At the moment, there are no signs that the stock price rally may reverse,” he said. “Investors are always on the lookout for factors that could end the current trend.”
According to the FedWatch tool of the Chicago Derivatives Exchange Group (CME Group), there is a 55.0% probability that the Federal Reserve will further cut the benchmark interest rate by 25bp (1bp=0.01%) at the FOMC in December, and freeze it at the current level (4.50-4.75%). The probability of doing so was reflected as 45.0%. The possibility of a freeze has increased by 17.2% points compared to the previous day, and the possibility of a 25bp cut has decreased accordingly.
International oil prices showed a downward trend. The price of West Texas Intermediate (WTI) crude oil for December delivery is trading at $68.17 per barrel, 0.77% lower than the previous price, and the price of Brent crude oil for January delivery next year is trading at $72.01 per barrel, 0.76% lower than the previous price.
[저작권자ⓒ 사회가치 공유 언론-소셜밸류. 무단전재-재배포 금지]
