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At the New York Stock Exchange (NYSE) on the 10th (Eastern Time), the Dow Jones Industrial Average closed at 29,202.88, down 93.91 points (0.32%) from the previous day. The Standard & Poor’s (S&P) 500 index fell 27.27 points (0.75%) to 3,612.39, and the Nasdaq index, centered on technology stocks, finished trading at 10,542.10, down 110.30 points (1.04%) from the battlefield. The Nasdaq closed at its lowest since July 2020, and the S&P 500 fell to its lowest level since late September.
Eleven sectors of the S&P 500 were mixed. △Consumer discretionary -0.61% △Consumer staples 0.29% △Energy -2.06% △Financial -0.48% △Healthcare -0.65% △Industry 0.33% △Raw material 0.24% △Real estate -1.19% △Technology -1.56% △Communication service -0.46 % △Utility 0.17%, etc. were recorded.
The market fell sharply on the day, affected by the Biden administration’s export controls to China and the Fed’s interest rate hike.
Earlier on the 7th, the U.S. Department of Commerce announced a regulation banning the export of semiconductor-related products to China to prevent the supply of advanced semiconductors to China’s supercomputer and artificial intelligence (AI) industries. As a result, the Philadelphia Semiconductor Index, which indexed related companies such as semiconductor equipment and equipment, recorded the lowest level in two years.
There were also hawkish remarks from Fed officials. “Monetary policy will be limited for a while,” Fed Vice Chairman Rael Brainard said at an event in Chicago. He added that the Fed is aware of the impact of rate hikes on the US and global economy. The Fed’s policy of raising interest rates has not been maintained for some time.
Remarks from other Fed officials also added to the momentum for rate hikes. Charles Evans, president of the Chicago Federal Reserve, said in a speech to the National Association for the Real Economy (NABE) that the Fed should raise interest rates by early next year. After that, he added that it should remain above the neutral rate and at levels slowing the economy.
Chris Zaccarelli, chief investment officer of the Independent Advisors Alliance, told CNBC: “The direction of the stock market is because we expect economic and corporate earnings to slow to a meaningful level or the Fed raises rates higher and is expected to remain at high levels for a longer period of time. is likely to be lower.”
As a result, technology stocks, which are directly affected by interest rate hikes, fell sharply. As interest rates rise, the cost of capital for tech stocks rises. For example, semiconductor stocks fell. △Nvidia (-3.36%) △AMD (-1.08%) △Qualcomm (-5.22%) and △Intel (-2.02%) all slipped.
International oil prices fell on fears of a decrease in demand due to the economic downturn.
On the New York Mercantile Exchange (NYMEX), the West Texas Intermediate (WTI) for November contract closed at $91.13 per barrel, down $1.51 (1.63%) from the previous trading day. On the London ICE Futures Exchange, December Brent crude fell by $0.69, or 0.7%, to $97.23 a barrel.
“People are looking bleak regarding the economic outlook because there is no certainty that inflation is under control,” said John Kilduff, partner at New York Again Capital LLC.
On the other hand, the Russian bombing of Kiiu made the dollar depreciate. The dollar index once hit 113.207.
- reporter information
- Kwon Seong-jin
- [email protected]
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