New York Stock Market, Nasdaq Falls 3.18% on Inflation Concerns... Tesla Plummets 8%

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Hyunjung] The New York stock market closed lower on the 11th (local time), mainly driven by technology stocks, following a higher-than-expected Consumer Price Index (CPI) for April.

On the day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 326.63 points (1.02%) from the previous close to finish at 31,834.11. The Standard & Poor's (S&P) 500 index dropped 65.87 points (1.65%) to 3,935.18, reaching its lowest level since March 2021. The tech-heavy Nasdaq index closed down 373.43 points (3.18%) at 11,364.24. Notably, leading technology stocks such as Tesla (-8.25%), Netflix (-6.4%), Apple (-5.2%), Meta (-4.5%), and Microsoft (-3.3%) deepened their losses and led the downward trend.

The April CPI released that day recorded 8.3%, slightly lower than the previous month’s 8.5%, but exceeded experts’ expectations of 8.1%, heightening investors’ inflation concerns. The core CPI, which excludes volatile food and energy prices, rose 6.2% year-over-year.

Rising inflation provides grounds for further monetary tightening by the U.S. Federal Reserve (Fed). Experts suggest that beyond the already anticipated rate hikes in June and July, the Fed may implement an additional 0.5 percentage point increase.

There are also forecasts of further stock price declines. Michael Wilson, Morgan Stanley strategist, said, "The bear market is not over yet," adding, "With growing concerns over slowing growth, there is room for correction." He recommended increasing allocations to healthcare, utilities, and real estate stocks as a defensive strategy, noting that stock volatility is expected to remain high over the next 12 months.

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