NY Stock Market: Tech Stocks Fell Yesterday, Dow Jones Plunges Today... Biggest Correction Since February

Attention on Consumer Price Index to Be Announced in a Day
Fed Officials Attempt to Curb Inflation Concerns

[Asia Economy New York=Correspondent Baek Jong-min] In the New York stock market, technology stocks that had plunged the previous day due to inflation concerns recovered from their sharp decline, but this time the Dow Jones Industrial Average experienced a significant correction.

On the 11th (local time), the Dow Jones fell 473.66 points (1.36%) to close at 34,269.16, the S&P 500 dropped 36.33 points (0.87%) to 4,152.10, and the Nasdaq fell 12.43 points (0.09%) to 13,389.43.

[Image source=AP Yonhap News]

The Nasdaq index started the day with a sharp decline following a 2.5% plunge the previous day but closed near flat as bargain hunting emerged, while the Dow Jones failed to reduce its losses and posted its largest drop since February 26.

Major tech stocks such as Apple and Amazon all started sharply lower but trimmed their losses by the close. Amazon managed to rise by 1%.

Tesla’s stock, hit by multiple negative factors, fell as much as 7% before the market opened but closed down 1.9%.

Big data company Palantir drew attention with a 9% rise. The ARK Innovation ETF, which holds large positions in Tesla and Palantir, also closed up 2%.

Vaccine maker Novavax fell 14% after announcing it would delay its emergency approval application for the COVID-19 vaccine to the third quarter, which acted as a negative factor.

Coupang, scheduled to release its first earnings report since listing the following day, fell another 2% to close at $36.25. Coupang’s stock price is now close to its IPO price of $35.

Cryptocurrency exchange Coinbase showed strength for the second consecutive day, rising 3% to regain the $300 range.

Federal Reserve (Fed) officials actively defended against inflation fears ahead of the U.S. Consumer Price Index (CPI) report to be released the next day.

According to Dow Jones estimates, the April CPI is expected to rise 3.6% year-over-year, and the core CPI is forecasted to increase 2.3% year-over-year.

Fed Governor Lael Brainard emphasized, "As the economy fully reopens and recovery gains momentum, it is important to be patient and focused on achieving our goals of full employment and inflation outcomes,"

Brainard said the Fed would take action if inflation significantly exceeds the Fed’s 2% target.

Patrick Harker, President of the Philadelphia Fed, also said there is no reason yet to withdraw monetary policy support, adding, "From a long-term perspective, the Fed wants inflation above the 2% target to make up for the long period of undershooting the goal."

Cryptocurrencies showed strength. Bitcoin rose 2.6%, Ethereum increased 5.8% to re-enter the $4,000 range, and Dogecoin surged 13%.

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