[New York Stock Market] "No Breakthrough" Ukraine Negotiation Optimism Recedes... Nasdaq Down 1.21%

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Major indices of the U.S. New York stock market all fell on the 30th (local time) as expectations for peace negotiations surrounding the Ukraine crisis retreated, putting an end to the recent upward trend.

On this day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 35,228.81, down 65.38 points (0.19%) from the previous session. The S&P 500, which focuses on large-cap stocks, ended at 4,602.45, down 29.15 points (0.63%), and the tech-heavy Nasdaq closed at 14,442.28, down 177.36 points (1.21%). The small-cap Russell 2000 also dropped 42.03 points (1.97%) to 2,091.07.

Investors closely watched the progress of peace talks between Russia and Ukraine, movements in government bond yields, oil price trends, and economic indicators released that day.

By sector, energy stocks showed strength as New York crude oil prices surged to the $107 per barrel range. Shares of Valero, a U.S. petrochemical and refining company, closed up 3.95% from the previous session. Refinery Phillips 66's stock price also rose nearly 5%. ExxonMobil (1.71%) and Marathon Oil (2.0%) also showed gains.

Semiconductor stocks were weak. Nvidia and Marvell Technology slid 3.37% and 4.14%, respectively, from the previous session. Micron fell more than 3% despite reporting better-than-expected earnings. Apple, which had risen for 11 consecutive trading days until the previous day, dropped 0.67%. Leading tech stock Tesla also closed down 0.51%.

Procter & Gamble (P&G) shares fell 0.69% after JP Morgan downgraded its investment rating from overweight to neutral. RH dropped more than 13% following its earnings release. On the other hand, Lululemon Athletica's stock jumped nearly 10% after reporting earnings that beat expectations and announcing a share buyback plan.

Uncertainty increased as Russian remarks indicated no breakthrough yet in talks with Ukraine. Dmitry Peskov, spokesperson for the Russian presidential office, said, "It is positive that Ukraine has started proposing specific details and documenting them," but added, "No breakthrough is yet visible in the other parts."

As hopes for a ceasefire agreement faded, international oil prices rose. On this day, May West Texas Intermediate (WTI) crude oil prices on the New York Mercantile Exchange closed at $107.82 per barrel, up $3.58 (3.4%) from the previous session.

Investors are also paying attention to the inversion phenomenon in government bond yields.

Earlier, the U.S. 5-year and 30-year Treasury yields inverted for the first time since 2016, and the previous day, the 10-year yield briefly fell below the 2-year yield before rising again, increasing concerns about a recession. On this day, the spread between the 2-year and 10-year yields hovered around 0.02 percentage points. As of 4 p.m., the 10-year yield was at 2.344%, and the 2-year yield was around 2.318%.

However, even if yields invert, it typically takes about a year for a recession to occur, and not all inversions have been followed by recessions, so the immediate impact on the stock market is considered limited.

The private employment data released on this day showed an increase exceeding expectations. The ADP National Employment Report announced that private sector employment increased by 455,000 in March compared to the previous month.

The final figure for the U.S. GDP in the fourth quarter of last year was also released. It rose 6.9% at an annualized rate compared to the previous quarter, marking six consecutive quarters of growth. This was a 0.1 percentage point downward revision from the preliminary estimate.

Market experts are focusing on the fact that economic indicators remain strong despite the Federal Reserve's early tightening moves. Naim Aslam, chief market analyst at AvaTrade, said in a report, "Strong indicators can trigger a risk-on rally by making it easier to accept the Fed's monetary tightening."

CNBC reported, "Since mid-March, the S&P 500 has risen about 10%, and the New York stock market has been strong for two consecutive weeks," but added, "Many investors remain unclear about the market rebound." Tom Essaye of The Sevens Report analyzed that for this rally to continue, positive events must soon emerge.

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