[New York Stock Market] 'Tightening Anxiety + Aftershock of Crash' Two Consecutive Days of Decline... Nasdaq Falls 1.4%

[Photo by AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] On the 6th, the New York stock market continued to decline, unable to recover from the shock of the previous day's plunge.

Concerns over the Federal Reserve's (Fed) aggressive monetary policy tightening remained unresolved. The April nonfarm payroll data released by the U.S. Department of Labor that day came out better than market expectations, further increasing worries about tightening.

The Dow Jones Industrial Average closed at 32,899.37, down 98.60 points (-0.30%) from the previous trading day. The S&P 500 fell 23.53 points (-0.57%) to 4,123.34, and the Nasdaq dropped 173.03 points (-1.40%) to 12,144.66.

The day before, the Dow and Nasdaq indices plunged 3.12% and 4.99%, respectively, marking the largest single-day drops since 2020, while the S&P 500 recorded its second-largest drop this year at 3.56%. The aftershocks of the previous day's plunge continued.

On this day, the New York stock market showed high volatility. The S&P 500 started lower and quickly widened its losses. About 30 minutes after the opening, the decline expanded to 1.9%. However, it then strongly rebounded and succeeded in reversing to gains. Afterward, it fluctuated around the flat line before widening losses again to over 1%, then reduced losses near the close.

The S&P 500 ended the week down 0.21%, marking its fifth consecutive weekly decline?the longest losing streak since June 2011.

Lindsay Bell, Chief Investment Strategist at Ally, said, "Uncertainty was so high that the New York stock market showed a rollercoaster pattern. The key question is how quickly U.S. interest rates will rise and whether the stock market can overcome this."

The Department of Labor announced that nonfarm payrolls increased by 428,000 in April. This exceeded economists' expectations of 380,000 compiled by Bloomberg, intensifying concerns about Fed tightening. Nonfarm payrolls have increased by more than 400,000 for 12 consecutive months. However, the April unemployment rate remained at 3.6%, the same as March, higher than the expected 3.5%.

Under Armour's stock plunged 23.8% due to forecasts that supply chain issues would hurt sales. Under Armour stated it expects a 5-7% sales growth rate for the current fiscal year, compared to 27% growth in the previous fiscal year.

Graphics processing unit (GPU) manufacturer Nvidia fell 0.9% after agreeing to pay a $5.5 million fine to the U.S. Securities and Exchange Commission (SEC). Nvidia faced controversy for not properly disclosing the impact of cryptocurrency mining on its GPU sales.

Apple, the largest company by market capitalization, rebounded with a 0.47% gain in a single day.

With Elon Musk raising $7 billion in investment funds, increasing the likelihood of acquiring Twitter, Twitter's stock reversed a three-day gain and fell 1.11%. Tesla also declined 0.87% alongside.

The yield on the U.S. 10-year Treasury note continued to rise, increasing 0.10 percentage points to 3.13% from the previous trading day.

At the New York Mercantile Exchange, June West Texas Intermediate (WTI) crude oil futures closed at $109.77 per barrel, up $1.51 (1.4%) from the previous day.

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