'The Problem Is Coin' NY Stock Market Mixed... Tesla Plummets, Ford Soars

Cryptocurrency Declines as China Signals Bitcoin Mining Crackdown
Tech Stocks Also Weaken
Ford Surges 6% on Electric Truck Boom...Tesla Falls 1%

[Asia Economy New York=Correspondent Baek Jong-min] Although the U.S. manufacturing and service sectors showed strong performance, major indices on the New York Stock Exchange closed mixed amid the fallout from the cryptocurrency crash.

Ford's electric truck F-150 Lightning [Image source=Reuters Yonhap News]

On the 21st (local time), the Dow Jones Industrial Average rose 123.69 points (0.36%) to close at 34,207.84, the S&P 500 index fell 3.26 points (0.08%) to 4,155.86, and the Nasdaq index dropped 64.75 points (0.48%) to 13,470.99.

The major indices all started strong, but following the release of IHS Markit's May manufacturing and services Purchasing Managers' Index (PMI) and cryptocurrency mining regulations from China, technology stocks weakened, resulting in only the Dow Jones index closing higher.

The manufacturing PMI rose to 61.5, higher than the previous month's confirmed figure of 60.5. The services PMI surged to 70.1 from the previous month's 64.7. Both manufacturing and services PMIs reached all-time highs.

This fueled expectations that the economic recovery is progressing rapidly.

Despite the strong economic indicators, the U.S. 10-year Treasury yield slightly declined to 1.623%.

Bitcoin prices also weighed on tech stocks that day. After China's State Council Financial Stability and Development Committee announced it would "crack down on Bitcoin mining and trading," cryptocurrency prices plummeted across the board.

Bitcoin, which was trading around $41,000, dropped 10% to the $35,000 range. Ethereum fell 17% to $2,200, and Dogecoin dropped 14% to around 33 cents.

Cryptocurrency exchange Coinbase also fell sharply by 3.8%.

Ford's stock surged 6.7%, attributed to the announcement that reservations for the F-150 Lightning electric pickup truck increased from 20,000 to 45,000 in one day following its unveiling. The F-150 Lightning uses batteries from SK Innovation.

On the other hand, electric vehicle leader Tesla fell 1.1%, coinciding with the Bitcoin decline. Bank of America (BoA) lowered Tesla's target price by 22%, from $900 to $700, and issued a neutral rating. The analysis suggests that Tesla's capital raising through stock issuance to fund large-scale production facility expansion could pressure its stock price.

Boeing rose 3.1% on news of expanding production of the 737 Max aircraft.

Apple fell 1.4% as CEO Tim Cook's court appearance as a witness in the lawsuit against Epic Games weighed on the stock.

Semiconductor company Nvidia rose 2% on the announcement of a 4-for-1 stock split.

Oil prices rose as a rebound buying wave emerged following an excessive drop. The July West Texas Intermediate (WTI) crude oil price closed up $1.64 (2.7%) at $63.58 per barrel.

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