[New York Close] SNS, Tesla and Tech Stocks Plunge 3% Amid Concerns on Nasdaq

Dow Jones Index Falls 1.9%
US DOJ Moves to Narrow Immunity for SNS Companies
Tesla and Others' Stock Prices Plunge

[Asia Economy Reporter Naju-seok] The New York stock market turned sharply downward after a day of gains. Concerns over the resurgence of the novel coronavirus infection (COVID-19), the U.S. government's plan to limit immunity protections for social networking services (SNS), and negative factors related to tech stocks such as Tesla influenced the market.

On the 23rd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 26,763.13, down 1.92% (525.05 points) from the previous trading day. The Standard & Poor's (S&P) 500 index fell 2.37% (78.65 points) to 3,236.92, and the tech-heavy Nasdaq index plunged 3.02% (330.65 points) to 10,632.99.

The significant drop in the Nasdaq was largely due to major tech stocks such as Microsoft, Apple, Alphabet, and Amazon falling more than 3%. SNS-related companies also declined following the U.S. Department of Justice's submission of a regulatory bill to limit the immunity protections previously granted to them.

Until now, SNS companies were not held responsible even if user-posted content contained illegal material, but the new bill includes provisions to strengthen companies' obligations to monitor user-posted content. However, the amendment restricts political censorship by SNS companies. Previously, former U.S. President Donald Trump expressed his intention to regulate SNS after Twitter added warning labels to his posts.

Tesla's stock also showed a sharp decline. Following disappointing reactions to the content revealed at the previous day's Battery Day, the stock plunged over 10%.

[Image source=AP Yonhap News]

Concerns over the spread of COVID-19 also weighed on the market. As the UK and various European countries strengthened lockdowns to curb the spread of COVID-19, anxiety increased. The recent rise in new COVID-19 cases in the U.S. also contributed to market unease.

Concerns about the U.S. government's economic stimulus measures also suppressed market sentiment. Although the U.S. House of Representatives passed a temporary budget bill to avoid a government shutdown, a solution for COVID-19 response stimulus measures has yet to be found. Moreover, there are growing concerns over political clashes regarding the appointment of a new Supreme Court justice.

Gold prices fell due to the strength of the U.S. dollar. At the New York Mercantile Exchange, December delivery gold closed at $1,868.40 per ounce, down 2.1% ($39.20) from the previous trading day.

International oil prices rose slightly. At the New York Mercantile Exchange, November delivery WTI (West Texas Intermediate) crude oil closed at $39.93 per barrel, up 0.3% ($0.13) from the previous trading day.

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