[New York Stock Market] Ukraine Crisis and US Interest Rate Hike Concerns Spread... Nasdaq Down 2.04%

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[Asia Economy New York=Special Correspondent Joselgina] Major indices on the U.S. New York Stock Exchange closed mostly lower on the 14th (local time), as investors remained cautious about the prolonged Ukraine crisis and the Federal Reserve's (Fed) interest rate hike moves. Technology stocks such as Apple, Tesla, Nvidia, and Qualcomm saw significant declines.

On this day at the New York Stock Exchange (NYSE), the Nasdaq Composite Index, which is tech-heavy, closed at 12,581.22, down 262.59 points (2.04%) from the previous session. The S&P 500 Index, which focuses on large-cap stocks, ended the day at 4,173.11, down 31.20 points (0.74%). The Russell 2000 Index, which tracks small-cap stocks, also fell 37.95 points (1.92%) to 1,941.72.

However, the Dow Jones Industrial Average, composed of blue-chip stocks, fluctuated between gains and losses before closing slightly higher by 1.05 points (0.0%), remaining near the flat line.

Investors closely watched the 4th round of negotiations between Russia and Ukraine, the upcoming Federal Open Market Committee (FOMC) regular meeting scheduled for this week, and the potential supply chain disruptions due to the resurgence of COVID-19 in China.

Among individual stocks, the decline in technology shares was particularly notable. This was due to the sensitivity of tech stocks to interest rates and concerns that the full lockdown of Shenzhen City in Guangdong Province, China, due to the COVID-19 outbreak could further worsen existing supply chain issues, compounding the problems.

Suppliers such as Taiwan's Foxconn and Unimicron Technology halted operations at their Shenzhen factories, causing Apple's stock to drop 2.82% from the previous session. Qualcomm slid sharply by 7.50%. Intel and Salesforce also fell more than 3% and 2%, respectively.

Chip manufacturers generally showed weakness, with Marvell Technology down 4.55% and Nvidia closing 3.55% lower. Tesla (-3.66%), Amazon.com (-2.50%), and Microsoft (-1.40%) also experienced declines.

Alongside this, international oil prices fell, leading energy stocks such as Coterra Energy and Devon Energy to drop more than 10%, showing weakness in the energy sector as well. Tom Martin, Senior Manager at Globalt Investments, described the mood as "the worst investor sentiment."

On the other hand, American Express and Visa each rose more than 2%. Moderna closed up 8%, and Pfizer rose over 3%.

In the bond market, the yield on the U.S. 10-year Treasury note surpassed 2.14%, reaching its highest level since July 2019 amid inflation concerns and the possibility of Fed tightening. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as Wall Street's "fear gauge," rose 3% to around the 31 level.

Investors in the New York stock market expect the Fed to raise interest rates at the FOMC meeting on the 15th-16th and are looking for hints on the pace of tightening and quantitative tightening (QT) in future meetings through Fed Chair Jerome Powell's press conference. According to the Chicago Mercantile Exchange (CME) FedWatch, the federal funds (FF) futures market reflects over a 96% probability of a 0.25 percentage point rate hike this month.

The Ukraine crisis also remains under close watch. The 4th round of negotiations between Russia and Ukraine, which began in the morning, lasted about two hours before going into a temporary recess. It remains uncertain whether Ukraine's demands for an immediate ceasefire and the withdrawal of Russian troops will be met. Additionally, concerns about a possible Russian default are significant, as Russia faces a $117 million payment deadline on dollar-denominated bonds on the 16th.

Since Russia's invasion of Ukraine last month, commodity prices that had surged have somewhat stabilized. On this day at the New York Mercantile Exchange (NYMEX), April delivery West Texas Intermediate (WTI) crude oil closed at $103.01 per barrel, down 5.8% ($6.32) from the previous trading day. WTI prices even briefly plunged more than 8% intraday to $99.76, breaking below the $100 per barrel mark.

Gold prices, which had risen due to safe-haven demand, also declined. April delivery gold on the New York Commodity Exchange closed at $1,960.80 per ounce, down 1.2% ($24.20). Palladium fell more than 15%, marking its largest drop since March 2020.

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