US Consumer Sentiment Index 'Surprises with Drop', NY Stock Market Closes Lower

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York Stock Exchange closed lower across the board despite strong retail sales, influenced by a decline in the consumer sentiment index.

On the 16th (local time), the Dow Jones Industrial Average fell 299.17 points (0.86%) from the previous close to 34,687.85, the S&P 500 dropped 32.87 points (0.75%) to 4,327.16, and the Nasdaq fell 115.90 points (0.80%) to 14,427.24.

That day, the major indices on the New York Stock Exchange started higher, buoyed by the announcement that June retail sales increased contrary to expectations, but they could not shake off the impact of a sharp decline in the University of Michigan consumer sentiment index compared to the previous month.

According to the University of Michigan, the July consumer sentiment index was 80.8, significantly below the 86.3 compiled by Dow Jones. It also fell from 85.5 in the previous month.

Contrary to earlier expectations that June retail sales would decline by 0.4%, they increased by 0.6% compared to the previous month, but the perception that consumers view the future economic outlook negatively hampered risk asset investment sentiment.

As a result, the yield on the U.S. 10-year Treasury note fell intraday to 1.292%. A rise in Treasury yields means a rise in Treasury prices.

The biggest topic in the market that day was Moderna. Moderna, which developed the COVID-19 vaccine, rose 10.3% to a record high, buoyed by the announcement of its inclusion in the S&P 500 index on the 21st.

Didi Chuxing fell more than 3% following news of a security review by Chinese authorities.

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