NY Stock Market Ends Mixed... Inflation Rotation Inflows and Tech Stocks Rebound

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Baek Jong-min] The U.S. New York stock market shook off concerns over soaring inflation and closed mixed. The Dow Jones Industrial Average continued to decline, but technology stocks rebounded, leading the S&P 500 and Nasdaq to close higher.

On the 11th (local time), the Dow Jones Industrial Average fell 158.71 points (0.44%) to 35,921.23, the S&P 500 rose 2.56 points (0.06%) to 4,649.27, and the Nasdaq increased 81.58 points (0.52%) to 15,704.28.

The major indices on the New York Stock Exchange showed signs of recovering from the impact of soaring inflation as rotation buying flowed in and technology stocks escaped the effects of rising bond yields.

Following the release of the October Consumer Price Index (CPI) showing a 6.2% increase the day before, commodity companies rallied across the board. Freeport-McMoRan Copper & Gold surged 9%, and Nucor rose 2.7%. The strength in commodities and the potential for inflation hedging lifted the stock prices of commodity-related companies. The Materials Select Sector SPDR Fund rose 0.8%, hitting an all-time high.

U.S. media reported that rotation buying flowed into commodity-related stocks due to rising inflation.

Ryan Detrick, Chief Investment Strategist at LPL Financial, analyzed, "The stock decline the day before was a natural correction after the recent rally," adding, "Economic growth remains solid and fundamentals are intact. Those claiming inflation is temporary are unsettled, but once supply chain issues are resolved, inflation will also decline."

Cliff Hodge, Chief Investment Officer at Cornerstone Wealth, explained, "Some investors believe the CPI will soon peak," indicating that there is market expectation for inflation to fall soon.

The semiconductor sector also showed notable strength. Nvidia rose 3% after Susquehanna raised its price target from $250 to $360. Western Digital and Seagate increased by 6.4% and 6.3%, respectively. Micron also gained 1%. AMD maintained its upward momentum with a 4.3% rise.

The streaming sector saw mixed results. Netflix rose 2.5%, but The Walt Disney Company plunged 7% due to a slowdown in Disney+ subscriber growth and earnings falling short of expectations.

Alibaba and JD.com showed rare strength, rising 2.3% and 8.3%, respectively, influenced by China's Singles' Day shopping festival.

Although the bond market was closed for Veterans Day, bank stocks such as JPMorgan Chase, Goldman Sachs, and Bank of America were strong amid expectations of rising interest rates.

Beyond Meat and Oatly plunged 13% and 8%, respectively, as their earnings fell short of expectations due to rising grain prices.

Date-matching company Bumble also saw its stock drop 19% following disappointing earnings.

Electric vehicle maker Rivian, newly listed the previous day, closed up 18%, surpassing GM's market capitalization. Tesla fell 0.4% but maintained its stock price above the $1,000 level, preserving its "Thousand-sla" status.

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