Tech Stocks Wobble... US Stock Market Uncertainty Amplifies

Nasdaq Down 5%... Largest Drop in 6 Months
Apple Falls 8%, Tesla Drops 9%
KOSDAQ Decline Limited

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market plunged as Apple and Tesla collapsed. The tech-heavy Nasdaq index fell 5% just one day after surpassing the 12,000 mark for the first time ever, marking the largest drop in six months.

[Image source=AP Yonhap News]

On the 3rd (local time), the Nasdaq index closed at 11,458.10, down 4.96% (598.34 points). The Dow Jones Industrial Average fell 2.8% (807.77 points) to 28,292.73, and the S&P 500 also dropped 3.51% to close at 3,455.06.

The mood on Nasdaq dramatically reversed in just one day. The previous day, the index continued its rally after breaking the 12,000 mark, but on this day, major tech stocks such as Apple, Amazon, Microsoft (MS), and Facebook plunged in a chain reaction, causing turmoil.

Apple and Tesla, which had driven the index rise through stock splits, fell 8% and 9%, respectively, on this day. Tesla’s stock price dropped nearly 20% over three trading days due to a large capital increase and the sale of shares by its second-largest shareholder, indicating the start of a correction.

Market experts attribute the stock market crash centered on tech stocks to a "correction phase." David Lefkowitz, head of US operations at USB Global Asset Management, diagnosed, "Today's sell-off is more likely a technical correction rather than a fundamental change." He explained that it is profit-taking due to tech stocks being excessively overvalued compared to their corporate value.

European markets, which closed on the same day, also fell slightly. The Stoxx 600 index, reflecting the overall European market, and Germany’s DAX index each dropped 1.4%, while France’s CAC 40 fell 0.4%.

The US stock market also influenced Asian markets. On the 4th, the Tokyo stock market opened with the Nikkei 225 index down 1.15% (269.47 points) from the previous day at 23,196.06. The TOPIX index started the session down 0.96% (15.59 points) at 1,615.65. The KOSPI also opened down 2.64% at 2,332.68, and the KOSDAQ started down 3.75% at 841.37. However, the KOSDAQ reduced its loss to 1.9% around 11:25 PM.

Not all stocks in the New York market fell. Carnival Corp., a cruise ship operator, rose 5%. However, the 'VIX,' known as the fear index, surged 26%, reflecting increased market uncertainty.

Due to the decline in the New York stock market, October delivery West Texas Intermediate (WTI) crude oil for delivery in India showed a sharp drop of over 3% during the session but closed down 0.3% (0.14 dollars) at 41.37 dollars. December delivery gold closed at 1,937.80 dollars per ounce, down 0.4% (6.90 dollars). The dollar value was largely unaffected. The dollar index, which shows the dollar’s value against major currencies, remained steady at 92.78, similar to the previous day.

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