Nasdaq Plunges 5% Intraday... Sharp Decline After First Breakthrough of 12,000 Level (Comprehensive)

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market turned sharply downward after just one day. The Nasdaq market, centered on technology stocks, plunged as much as 5% intraday, creating a widespread atmosphere of correction across the market.

As of 11:50 a.m. local time on the 3rd, the Nasdaq index is down 3.79% compared to the previous day. The Dow Jones Industrial Average fell 1.81%, and the S&P 500 index dropped 2.51%.

[Image source=AP Yonhap News]

The Nasdaq index fell as much as 5% intraday before slightly recovering some losses, but the downward trend remains.

The decline in the indices today is led by technology stocks. The leading stock Apple’s price plunged as much as 7% intraday and is trading at a 5.5% decline. CNBC reported that today’s drop in Apple’s stock price is the largest since March 16, during the height of the COVID-19 crisis.

Tesla’s stock, which heated up the market with a stock split along with Apple, is also down 7.5%. Tesla is considered to have entered a correction phase, falling nearly 18% from its peak on the 31st of last month.

Other major tech stocks such as Microsoft (-5.5%), Amazon (-4.1%), Facebook (-4.1%), and Alphabet (-3.7%) are all showing weakness.

CNBC noted that the correction came after Nasdaq surpassed the 12,000 mark for the first time ever the previous day. Attention is particularly drawn to the fact that despite the weekly initial jobless claims released today showing better-than-expected improvement, selling pressure surged.

The ISM Non-Manufacturing Purchasing Managers’ Index (PMI) for August, released today, was 56.9, down from 58.1 the previous month. Although the expansion slowed somewhat, it is positive that the consumer sector continued its expansion for the third consecutive month.

Tom Essaye, founder of The Sevens Report, said, "The reason additional stimulus legislation is facing difficulties is that the market is hotter than expected. If tomorrow’s employment data is good, it will be positive news, but if it is better than expected, stimulus negotiations could become even more difficult."

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