'Lifeless Tech Stocks' Facebook Drops 4% Sharply... NY Stock Market Falls Again

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York Stock Exchange fell sharply in the second trading session of October.

On the 4th (local time), the Dow Jones Industrial Average dropped 323.54 points (0.94%) to close at 34,002.92, the S&P 500 index fell 56.58 points (1.30%) to 4,300.46, and the Nasdaq index declined 311.21 points (2.14%) to 14,255.49.

Technology stocks plunged again on the day, dragging down not only the Nasdaq but also the S&P 500 index. The Nasdaq index fell more than 2.5% intraday. The decline from the Nasdaq’s peak reached 7.45%.

Apple’s stock price dropped about 2.5%, falling approximately 11% from its recent high, entering a technical correction. Major tech stocks such as Amazon, Alphabet, and Microsoft also fell about 2% each.

Facebook plunged 4.9% amid pressure from a whistleblower coming forward and a service outage. The declines in Twitter and Snap, also SNS services, were even larger than Facebook’s. The drop in SNS companies’ stock prices is understood to be due to growing concerns over government regulation.

Despite U.S. Treasury yields showing little fluctuation, tech stocks continued their weakness, raising concerns that this downtrend may not stop easily.

Jim Paulson, Chief Investment Strategist at Royhold Group, explained, "The market is reflecting the economic reopening, and the leading stocks are changing." He forecasted, "As commodity prices and bond yields rise, cyclical stocks and small caps will show strength, but tech stocks will remain weak."

Energy-related stocks continued their rally as oil prices hit a seven-year high. On the day, ExxonMobil rose 1.3%, and ConocoPhillips increased 2%.

West Texas Intermediate (WTI) crude oil closed at $77.62 per barrel, rising more than 2% on news that the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC major oil producers, including Russia, collectively known as 'OPEC Plus' (OPEC+), decided to maintain the current production increase pace in November. Brent crude prices also surged to $82 per barrel.

Despite the energy companies’ rally, Amplify Energy, which caused an oil spill off the coast of California, suffered a catastrophic 43% plunge in a single day, wiping out half of its corporate value.

Tesla’s stock rose 1% on news that its third-quarter vehicle deliveries significantly exceeded market expectations.

General Motors (GM) rose 1.6% after activist hedge fund Engine No. 1 announced it had purchased shares. Engine No. 1 explained that it bought shares because it views GM’s electric vehicle expansion plans positively.

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