[New York Stock Market] Four Consecutive Days of Decline Due to Tightening and Recession Concerns... Nasdaq Down 1.49%

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Major indices on the U.S. New York stock market closed lower across the board on the 19th (local time) as concerns over central bank tightening and the resulting economic recession persisted. This marks the fourth consecutive day of decline.

On this day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 32,757.54, down 162.92 points (0.49%) from the previous session. The S&P 500, which focuses on large-cap stocks, fell 34.70 points (0.90%) to 3,817.66, while the tech-heavy Nasdaq dropped 159.38 points (1.49%) to 10,543.03.

By sector, all 10 sectors of the S&P 500 except energy declined. Particularly, communication, technology, and materials sectors saw significant drops. Amazon fell 3.35% from the previous close. Apple (-1.59%), Microsoft (-1.73%), and Nvidia (-1.91%) also declined consecutively.

Meta, Facebook's parent company, dropped more than 4% after the European Union (EU) issued a preliminary opinion citing antitrust violations. Twitter's stock rose 0.66% following news that a majority voted in favor of CEO Elon Musk stepping down from Twitter management.

Disney's stock fell nearly 5% as the movie "Avatar: The Way of Water" failed to meet box office expectations. Representative resort stocks such as Wynn Resorts (-5.17%), MGM Resorts (-4.04%), and Las Vegas Sands (-2.38%) also slid collectively.

Investors are pricing in the possibility that the Federal Reserve's tightening will continue into next year, increasing the likelihood of an economic recession. Currently, there is an assessment that there is no particular catalyst strong enough to drive a bull market.

Chris Larkin, Executive Director of Trading at E*TRADE, said, "As we enter December, investors are still waiting for a Santa rally," but added, "Fed Chair Jerome Powell's firm (hawkish) stance has given some investors reason to believe that interest rates could remain elevated for quite some time." However, the interest rate futures market reflects the possibility of rate cuts by the Fed in the second half of the year, revealing a significant difference in views between the Fed and the market.

After Tuesday's market close, companies such as FedEx and Nike will release earnings. With growing recession concerns, these companies' results are expected to attract more attention. Michael Wilson, Morgan Stanley's equity strategist, evaluated, "Warning signs about profitability are still underestimated (compared to interest rates and inflation), but they can no longer be ignored."

Oil prices rose for the first time in three trading days. On the New York Mercantile Exchange, the January contract for West Texas Intermediate (WTI) crude oil closed at $75.19 per barrel, up 90 cents (1.21%) from the previous session.

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