NY Stock Market: Tech Stocks Soar Amid COVID Resurgence Fears, Cyclical Stocks Plunge

Austrian police are checking citizens' vaccination status.
[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The resurgence of COVID-19 led to mixed directions in major indices of the New York stock market. Safe-haven assets and tech stocks were strong, while cyclical stocks were weak.

On the 19th (local time), the Dow Jones Industrial Average fell 268.97 points (0.75%) to close at 35,601.98, the S&P 500 index dropped 6.58 points (0.14%) to 4,697.96, and the Nasdaq index rose 63.73 points (0.40%) to close at 16,057.44.

The spread of COVID-19 in Europe triggered a rally in safe-haven assets. The yield on the U.S. 10-year Treasury note fell to 1.515% reflecting concerns over the resurgence of COVID-19, then settled around the 1.54% level.

This showed strength in U.S. Treasury prices despite the upcoming tapering.

With bond yields falling and expectations of benefits from the COVID-19 spread, tech stocks were strong. The Nasdaq index closed at an all-time high.

In the semiconductor sector, Micron Technology rose 7.8%, and Nvidia increased 4.14%. Semiconductor equipment maker Applied Materials fell 5% after its earnings disappointed expectations.

Accounting software company Intuit led the tech stock rally by surging 10% following strong earnings results.

Energy-related stocks plunged collectively as international oil prices dropped nearly 4% amid concerns over slowing demand due to the COVID-19 spread.

Travel-related stocks such as United Airlines, Carnival Cruise, and Airbnb also fell sharply.

On the other hand, Moderna rose 4% on news that the U.S. Food and Drug Administration (FDA) approved booster shots for all adults.

Rivian rebounded 4% after a sharp drop the previous day, despite Ford withdrawing its joint electric vehicle development plan. Lucid experienced a rollercoaster session, rebounding 17%. Tesla rose 3.7%, surpassing $1,100 and returning to the "Thousand-One-Hundred Tesla" level.

Apple closed up 1.7%, hitting an all-time high after reports anticipated the announcement of a fully autonomous vehicle by 2025.

On the same day, senior Fed officials mentioned that the tapering pace could accelerate. Christopher Waller, a Fed Governor, said, "If the economy shows rapid progress toward maximum employment or inflation indicators do not show signs of retreating from the current high levels, the FOMC may speed up the tapering pace."

Fed Vice Chairman Richard Clarida also said it might be appropriate to discuss accelerating the tapering pace at the December Federal Open Market Committee (FOMC) meeting.

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