NY Stock Market Falls Across the Board Amid Fed Tapering Concerns (Comprehensive)

Many Opinions Suggest Further Increase Possible Within the Year

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market fell for the second consecutive day due to the Federal Reserve's (Fed) indication of tapering asset purchases within the year.

On the 18th (local time), the Dow Jones Industrial Average dropped 382.59 points (1.08%) to 34,960.69, the S&P 500 index fell 47.81 points (1.07%) to 4,400.27, and the Nasdaq index closed down 130.27 points (0.89%) at 14,525.91.

The market focused on the July FOMC minutes released at 2 p.m. that day. Investor sentiment worsened as it was revealed that the majority of members mentioned that starting tapering within the year would be appropriate.

Despite the tapering announcement, the U.S. 10-year Treasury yield rose by 0.002 percentage points to 1.26%. The 30-year yield fell by 0.01 percentage points to 1.908%. The dollar index, which had been strong, remained flat.

There were also forecasts that the U.S. stock market might actually rise despite the tapering announcement. The major New York stock indices only experienced a correction of about 2% from their highs that day.

Chris Zaccarelli, Chief Investment Officer of Independent Advisor Alliance, predicted, "With continued positive economic news, the market could form new highs by the end of the year."

Fahad Kamal, Chief Investment Officer (CIO) at Kleinwort Hambros, also argued, "With policy reasonably supported, ongoing growth, and increasing vaccination rates, the stock market environment continues to improve."

Charles Hepworth, Investment Director at GAM Investments, supported the bullish market view, saying, "Stimulus is still present. It is uncertain whether we will see a severe market correction."

By individual stocks, Lowe's, a peer company that exceeded earnings expectations unlike Home Depot, surged 9.6%. Another retailer, Target, fell 2.8% due to concerns over online sales growth.

Donut company Krispy Kreme dropped 6.9% after its earnings announcement.

Amazon fell 1.2% on news that it conveyed concerns about potential operational impacts due to monopoly-related regulations affecting its marketplace sellers.

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