The New York stock market experienced a widespread decline as technology stocks faced significant selling pressure. Profit-taking in artificial intelligence (AI) and semiconductor stocks led to a drop of over 2% in the Nasdaq index.
On June 23, the Dow Jones Industrial Average closed down 45.87 points (0.09%) at 51,666.84. The Standard & Poor's 500 index fell 107.33 points (1.44%) to finish at 7,365.46, while the Nasdaq Composite dropped 579.56 points (2.21%) to close at 25,587.04.
The market's burden was primarily concentrated on technology stocks. Major tech and semiconductor companies, which had driven recent market gains, showed weakness, pulling down the overall indices. Notably, poor performance in memory semiconductor stocks exacerbated the sell-off in tech shares, marking the largest decline for the Nasdaq in over two weeks.
Nvidia fell 4.1%, and Tesla dropped 5.8%. As concerns grew over increased AI investments and large-scale corporate funding, worries about overvaluation resurfaced, dampening investor sentiment.
Interest rate pressures also negatively impacted the market. Although the yield on 10-year U.S. Treasury bonds slightly decreased during the session due to a preference for safe assets, investors remained cautious about the possibility of further rate hikes by the Federal Reserve. Analysts noted that strong economic indicators and inflation concerns have led to expectations of a rate increase in September.
While a decline in international oil prices eased concerns about energy price shocks, the burden of overheated tech stocks and interest rate anxieties outweighed the stabilizing effects of oil prices, leading to a weakened preference for riskier assets.
Experts believe that the recent market rise, driven by optimism surrounding AI and improved corporate earnings forecasts, will depend on the performance of tech stocks and the Federal Reserve's interest rate trajectory. The market is expected to assess whether the current tech stock adjustments are merely temporary profit-taking or signals of a slowdown in the upward trend based on upcoming major corporate earnings and economic indicators scheduled for this week.
* This article has been translated by AI.
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