Diverging Fortunes of Dow Jones and Nasdaq Amid Apple Stock Split

Impact of Apple Stock Split Weakens Dow Jones... Nasdaq Hits All-Time High

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Despite the Dow Jones Industrial Average showing weakness due to Apple's stock split effect, the Nasdaq index once again hit an all-time high. Although the Dow showed weakness, it recorded the highest August return since 1984.

On the 31st (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 223.82 points (0.78%) to close at 28,430.05, the S&P 500 index dropped 7.70 points (0.22%) to 3,500.31, and the Nasdaq index rose 79.82 points (0.68%) to close at 11,775.46.

The market's focus that day was on the stock splits of Apple and Tesla. Apple started trading after a 4-for-1 split, and Tesla after a 5-for-1 split, with their shares rising 3.4% and 12.6%, respectively. Thanks to this, the Nasdaq also showed strength.

On the other hand, the Dow struggled as Apple's stock price dropped due to the split. Unlike the market cap-weighted S&P 500 and Nasdaq, the Dow uses a price-weighted method. The stock split caused Apple's price to fall to one-quarter of its previous value, making a decline in the index inevitable.

On a monthly basis, the Dow recorded a 7.6% gain this month, marking the highest August monthly return since 1984. The S&P 500 rose 7%, marking its fifth consecutive month of gains. The Nasdaq index rose 9.6% this month, the best August performance since 2000.

International crude oil prices declined amid concerns of oversupply. October delivery West Texas Intermediate (WTI) crude closed down 0.8% ($0.36) at $42.61 per barrel. WTI's August gain was 5.8%.

December delivery gold closed up 0.2% ($3.70) at $1,978.60 per ounce. On a monthly basis, gold fell 0.4%,

ending its five-month consecutive rise.

This content was produced with the assistance of AI translation services.