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The New York stock market closed mixed.
Following Nvidia, Apple, and Broadcom, Adobe, another technology stock, soared due to the artificial intelligence (AI) craze, pushing the Nasdaq index to an all-time high for five consecutive trading days.
On the 14th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed trading at 38,589.16, down 57.94 points (0.15%) from the previous day.
The Standard & Poor's (S&P) 500 index was traded at 5,431.60, down 2.14 points (0.04%) from the previous day, and the Nasdaq index was traded at 17,688.88, up 21.32 points (0.12%) from the previous day.
Market participants paid attention to the sharp rise of technology stock Adobe on this day due to expectations of artificial intelligence (AI).
The stock price of Adobe, a software developer famous for 'Photoshop,' soared more than 14%.
Adobe achieved its highest performance in four years since 2020, thanks to demand for products incorporating generative artificial intelligence (AI) functions.
As Adobe continues the recent trend of large technology stocks such as NVIDIA and Apple rising sharply due to AI-related good news, technology stocks are continuing to ride the wave.
As attention focused on the possibility of an increase in the number of companies benefiting from AI, the Nasdaq index broke its all-time high for five consecutive trading days.
As U.S. inflation indicators showed signs of softening day after day, expectations for the start of an interest rate cut cycle also added strength to the technology stocks' wave.
However, on this day, Federal Reserve officials emphasized the need to look further at the data.
Loretta Mester, president of the Cleveland Federal Reserve, said that cutting interest rates would require looking at inflation numbers.
Chicago Fed President Austan Goolsbee also said of the May consumer price index (CPI) that it was "a very good number" and that "we need to see more progress."
As authorities took a cautious stance, stock market investment sentiment became somewhat calm.
US economic indicators showed some signs of slowing down.
The U.S. Department of Labor announced that the import price index in May fell 0.4% compared to the previous month. This is below the expectations of experts in the Wall Street Journal (WSJ).
According to the University of Michigan, the preliminary consumer sentiment index for June was 65.6.
This is a 3.5 point drop from the previous month and the lowest in 7 months.
The one-year expected inflation reserve was 3.3%, the same as the previous month, and the five-year long-term expected inflation reserve was 3.1%, a slight increase from 3.0% in the previous month.
According to CME Group's FedWatch tool, the probability of a 25bp cut by the U.S. Federal Reserve in September has increased to 59.9%. The probability of freezing in September was 30.8%. In addition, the financial market reflected the probability of the Federal Reserve cutting interest rates in December at around 43.7%.
Looking at the stock price trends of other stocks, Nvidia rose by 1.7%. Nvidia showed a solid trend after the 10-to-1 stock split.
Apple fell after four trading days. Apple's stock price fell about 0.8% on this day.
Tesla's stock price fell by 2%, and Broadcom's stock price rose 3.3%. Broadcom has risen for 6 consecutive trading days since the 7th. Broadcom rose sharply as it raised its earnings forecast and announced a plan for a 10-to-1 stock split, raising expectations on Wall Street that it would enter the $1 trillion market capitalization club.
By industry index, indices related to consumer staples, technology, and communication rose. Indices related to energy, finance, health, industry, materials, real estate, and utilities fell.
The Chicago Board Options Exchange (CBOE) volatility index (VIX) showed 12.66, up 0.72 points (6.03%) from the previous day.
Cryptocurrency leader Bitcoin fell to the $65,000 range on the 14th (local time) due to the U.S. interest rate cut this year and political uncertainty in Europe.
According to Coinbase, a U.S. virtual currency exchange, as of 3 p.m. Eastern time on this day, the price of one Bitcoin was traded at $65,455, down 2.01% from 24 hours ago.
Bitcoin, which had been trading at the $67,000 level the previous day, fell to $60,005 at one point on this day, threatening the $60,000 level.
At the same time, Ethereum, the second largest market cap, also fell 2.50% to $3,382.
Until the morning of the 12th, Bitcoin was trading at around $70,000 due to news of a slowdown in the growth rate of the U.S. Consumer Price Index (CPI) in May.
This is because expectations for a base interest rate cut by the U.S. Federal Reserve (Fed) have increased as the CPI growth rate appears to have slowed.
However, contrary to expectations, the price of Bitcoin turned downward as the Federal Reserve froze interest rates at the Federal Open Market Committee (FOMC) on the 12th. In particular, the decline increased as the Federal Reserve indicated that it would cut the U.S. benchmark interest rate only once by the end of this year, down from the original three.
In addition, the growing political uncertainty in France due to the possibility of the far-right National Rally (RN) taking power also encouraged a decline in prices.
According to coin data analysis company Coinglass, over the past 24 hours, $180 million worth of leveraged derivatives across all virtual currency assets were forced to be sold.
These products had been betting on price increases for a long time, but as the price of Bitcoin fell, they were forced to sell to repay the virtual currency borrowed from the exchange.
This week alone, more than $870 million was forced into liquidation.
CoinDesk, a media outlet specializing in cryptocurrency, said, “On the 12th, the Federal Reserve predicted only one interest rate cut this year that would be lower than the previous forecast, dashing investors’ hopes for an easing monetary policy this summer,” adding, “Political uncertainty in Europe is also a factor.” “The U.S. dollar index (DXY) against major currencies rose to its highest level in over a month, putting pressure on Bitcoin,” he analyzed.
Meanwhile, CoinDesk diagnosed that “Bitcoin has fallen 6% over the past week, showing signs of decoupling from Nasdaq.”
The media said, “The factors behind Bitcoin’s recent weakness are Bitcoin whales’ profit taking and miners’ selling. According to CryptoQuant, the number of BTC that had been dormant for 1-2 years has decreased, which suggests that profit-taking items have been put on sale.
