[마감]US New York stock market, interest rates soar despite Federal Reserve cut, Nasdaq plunges 1.6%, Dow-S&P falls 0.9%

Apple 2.1%, Nvidia 2.8%, Microsoft 0.6%, Amazon.com 2.6%,
Meta 3.1%, Google’s Alphabet 1.4%, Tesla 1.9%,
Netflix closed down 1.9%, AMD closed down 0.7%, and ARM closed down 6.6%.

▲The New York stock market closed on the 23rd (local time) with the three major indices, including Nasdaq, falling sharply in a turbulent atmosphere. The photo shows the interior of the New York Stock Exchange (NYSE)/provided by Yonhap News.

[소셜밸류=김완묵 기자] The New York stock market closed with a sharp drop due to the sudden high interest rates on U.S. Treasury bonds. The Nasdaq index plunged 1.6%, and the Dow and S&P indices also fell nearly 1%, continuing corrections this week.

On the 23rd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 42,514.95, down 409.94 points (0.96%) from the previous day.

The Standard & Poor’s (S&P) 500 index closed at 5,797.42, down 53.78 points (0.92%) from the previous day, and the Nasdaq Composite Index, centered on technology stocks, closed at 18,276.65, down 296.48 points (1.60%) from the previous day. The Philadelphia Semiconductor Index closed at 5,131.37, down 59.34 points (1.14%) from the previous day.

Major stocks include Apple down 2.1%, Nvidia down 2.8%, Microsoft down 0.6%, Amazon.com down 2.6%, Meta 3.1%, Google’s Alphabet down 1.4%, Tesla down 1.9%, Netflix down 1.9%, AMD down 0.7%, and ARM down 6.6%. It closed with a % drop.

On this day, U.S. Treasury yields continue to rise steadily. As of 4:06 p.m. local time, the 10-year yield is at 4.238%, up 0.032 percentage points (3.2 bp) from the previous day, and the 2-year yield is at 4.078%, up 0.041 percentage points (4.1 bp) from the previous day.

As of 11:35 a.m. local time, the Dow Jones Industrial Average was recording 42,553, down 371 points (0.87%) from the previous level.

The Standard & Poor’s (S&P) 500 index was at 5,809, down 42 points (0.72%) from the previous day, and the Nasdaq Composite Index, centered on technology stocks, was at 18,377, down 195 points (1.05%) from the previous day. The Philadelphia Semiconductor Index was at 5,158, down 31 points (0.61%) from the previous day.

Major stocks included Apple down 1.0%, Nvidia 2.6%, Amazon.com 1.6%, Meta 1.4%, Google’s Alphabet 1.5%, Tesla 1.4%, Netflix 1.3%, AMD 1.3%, and ARM 5.1%. However, Microsoft was rising by 0.08%.

Prior to this, as of 10:30 a.m. local time, the Dow Jones Industrial Average was recording 42,718.61, down 206.28 points (0.48%) from the previous level. The Standard & Poor’s (S&P) 500 index was at 5,827.51, down 23.69 points (0.40%) from the battlefield, and the Nasdaq Composite Index, centered on technology stocks, was at 18,454.07, down 119.06 points (0.64%) from the battlefield.

According to foreign media and Yonhap News, on this day, the Dow and S&P 500 indices fell for three consecutive trading days, and the Nasdaq index turned downward for the first time in five trading days. In particular, the drop increased in the afternoon, and the market ended in a close to sharp decline.

On this day, the BOC announced that it would lower the base interest rate by 50bp (1bp=0.01%) from 4.25% to 3.75%. This is the first time in over four years that the BOC has cut interest rates by more than 25 basis points. The BOC has cut interest rates four times in a row since last June. The previous three interest rate cuts were all 25bp.

The decline in the stock price of McDonald’s, the world’s largest fast food chain, dragged down the Dow. McDonald’s stock price fell more than 5% due to the bad news about the ‘E. coli hamburger’. The U.S. Centers for Disease Control and Prevention (CDC) announced that it had confirmed that the McDonald’s chain’s Quarter Pounder Burger was the cause of the E. coli infection outbreak, in which 49 cases, including 1 death and 10 hospitalizations, were reported in 10 U.S. states the day before.

Coca-Cola, the world’s No. 1 general beverage company, reported both sales ($11.9 billion) and earnings per share ($0.77) that exceeded market expectations ($11.63 billion, $0.75), but its stock price fell 2%. They stated that they made up for the sluggish demand by raising prices.

High interest rates on U.S. Treasury bonds also acted as a burden on the market today. Stock market experts believe that if the 10-year interest rate exceeds 4.3%, it will put serious downward pressure on the stock market.

The dollar index also maintained its strongest level in two months at 104.48, 0.41 points (0.39%) higher than the previous trading day. Amid growing expectations for the European Central Bank’s (ECB) ‘big cut’ in December, the perception that the U.S. Federal Reserve’s (Fed) interest rate cuts may be relatively slow as the Bank of Canada cut interest rates by 50 basis points has strengthened the dollar. They are encouraging it.

Economic media outlet CNBC reported, “Investors had expected the Federal Reserve to cut interest rates by an additional 50 basis points within the year, but there has recently been growing concern that the will of Federal Reserve personnel to lower interest rates is weakening.” However, Jeff DeGraff, head of technical research at Renaissance Macro Research, said, “The stock market backdrop remains constructive.” He added, “The market trend is still positive,” adding, “There is not much short-term momentum, but narrow fluctuations often lead to an upward trend.”

According to the FedWatch tool of the Chicago Derivatives Exchange Group (CME Group), the probability that the Federal Reserve will cut the benchmark interest rate by 25bp (1bp = 0.01%) in November is 89.0%, and the probability of freezing it is 11.0%. The possibility of freezing increased by 3.5 percentage points compared to the previous day.

International oil prices also continued to decline. The price of West Texas Intermediate (WTI) crude oil for December delivery is trading at $70.99 per barrel, down 1.05% from the previous day, and the price of Brent crude oil for December delivery is trading at $75.19 per barrel, down 0.85% from the previous day.

[저작권자ⓒ 사회가치 공유 언론-소셜밸류. 무단전재-재배포 금지]