A Sleepless Night for Foreign Retail Investors (Comprehensive)

Stock Prices of Tesla, Apple, and Others Fall on the 18th
Watching the Night of the 19th Amid Rising Interest Rates

[Asia Economy Reporter Hwang Junho] Sleepless nights have come for Seohak Gaemi (Korean investors investing overseas). On the 18th, major investment stocks of Seohak Gaemi, including Tesla, slid significantly. The Federal Reserve Chairman Jerome Powell's inflation outlook, rather than his commitment to maintaining an accommodative monetary policy the day before, exerted downward pressure on the stock market. With increased volatility in the New York stock market, it is expected that many will watch the market with sleepless eyes on the 19th.

Tesla down 6.93%

Jerome Powell Fed Director

On that day, Tesla, a representative investment stock of Seohak Gaemi, dropped by 6.93%, closing at $653.16 per share. Tesla has been the stock with the largest purchase settlement amount by Seohak Gaemi over the past month. The downward pressure on technology stocks due to interest rate hikes pulled Tesla's stock price down.

After the Federal Open Market Committee (FOMC), which provides direction on U.S. monetary policy, Chairman Powell adjusted the inflation forecast from 1.8% to 2.4%, which the bond market interpreted as tolerating inflation. When inflation rises, market interest rates also increase. On that day, the U.S. 10-year Treasury yield initially exceeded 1.75% but closed at 1.71%, confirming this trend. The U.S. economic media outlet The Wall Street Journal analyzed this as the highest level since January last year, before the COVID-19 outbreak. The 30-year yield also briefly exceeded 2.5%, reaching its highest level since 2019. As a result, the Nasdaq, which is technology stock-heavy, closed down 3.02% at 13,116.17 compared to the previous session.

News that the U.S. government has begun investigating Tesla vehicle crashes also contributed to the increased decline. The U.S. National Highway Traffic Safety Administration (NHTSA) announced that it has started investigating 27 accidents involving Tesla vehicles. NHTSA also plans to send a special investigation team to Michigan, where a recent Model Y collision with a police car occurred.

Will the market be okay on the 19th?

Palantir Technologies, another major investment stock of Seohak Gaemi, closed down 4.88% at $23.98. Nvidia also ended the session down 4.64% at $508.90. Apple closed down 3.39% at $120.53, and Amazon fell 3.44% to $3,027.99. Alphabet (Google's parent company) dropped 2.92% to $2,021.34, and Facebook closed down 1.90% at $278.60.

Seosangyoung, a researcher at Kiwoom Securities, explained, "The U.S. stock market fell due to the rapid rise in U.S. Treasury yields amid expectations that the timing of interest rate hikes in various countries will be brought forward," adding, "Selling pressure emerged mainly in technology and theme stocks." He also analyzed, "The international oil price fell sharply by more than 7% due to the strong dollar, strengthened economic lockdowns in France, and U.S.-Russia tensions, which also added to the burden."

The stock market is expected to remain volatile the next day as well. On that day, the New York Stock Exchange volatility index rose 12.22% to 21.58. Lee Kyungmin, a research analyst in investment strategy at Daishin Securities, diagnosed, "The Nasdaq may test support at the previous low level," and added, "It is necessary to utilize the fluctuation process caused by inflation concerns to increase portfolio weight."

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