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The New York stock market showed mixed results.
As NVIDIA, the ‘artificial intelligence (AI) leader’, showed a decline, enthusiasm for investing in technology stocks appeared to be somewhat stagnant.
However, the Dow Jones Industrial Average rose for four consecutive trading days, reflecting the expectations of remaining stock investors.
On the 21st (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed trading at 39,150.33, up 15.57 points (0.04%) from the previous day.
The Standard & Poor's (S&P) 500 index showed 5,464.62, down 8.55 points (0.16%) from the previous day, and the Nasdaq index showed 17,689.36, down 32.23 points (0.18%) from the previous day.
The Dow maintained its upward trend this week except for the closing day on the 19th.
However, the S&P 500 index and Nasdaq index reached record highs this week, but recorded negative figures for two consecutive trading days.
On this day as well, the eyes of market participants turned to Nvidia.
As the artificial intelligence investment craze was focused on NVIDIA, the fact that NVIDIA's stock price fell by 3% from the previous day was a burden on the stock index.
Even on a weekly basis, NVIDIA showed an upward trend for 8 consecutive weeks and then fell for 9 weeks. Nevertheless, Nvidia's stock price has shown an increase of nearly 155% this year.
Market participants say that although the popularity of technology stocks for AI and semiconductor investment has slowed slightly, they are expressing doubts that a full-scale correction will occur.
The market took a breather as the enthusiasm in the technology stock sector, which had supported the stock index's high performance so far, subsided.
This day was the so-called ‘Triple Witching Day’, when the expiration dates of three major derivative products overlapped. As a result, the overall trading volume in the market surged.
‘Three Witches’ Day’ is a day when the contract expiration dates of major derivative products such as stock index futures, stock index options, and individual stock options overlap, and falls on the third Friday of March, June, September, and December.
While U.S. economic indicators show mixed trends, market participants are looking for signs of an economic slowdown that could serve as a hint for an interest rate cut.
According to the National Association of Realtors (NAR), U.S. existing home sales (seasonally adjusted) in May were 4.11 million units, down 0.7% from the previous month.
The median price of an existing home in May rose 5.8% compared to the previous year to $419,300, reaching an all-time high.
The Conference Board announced that the US leading economic index in May recorded 101.2, down 0.5% from the previous month. This figure is worse than the market forecast of a 0.3% decline compiled by the Wall Street Journal (WSJ).
According to Standard & Poor's (S&P) (Markit) Global, the preliminary US service industry Purchasing Managers' Index (PMI) in June recorded 55.1. This exceeded the Wall Street market forecast of 54.0.
The preliminary manufacturing PMI for June also recorded 51.7, exceeding market expectations of 51.0.
There was no significant change in the outlook for the U.S. Federal Reserve's (Fed) interest rate cut path.
Austan Goolsbee, President of the Federal Reserve Bank of Chicago, said in an interview with Fox News that if inflation in the United States continues to show the same level of calm as last May, the Federal Reserve System (Fed) will be able to cut interest rates.
According to CME Group's FedWatch tool, the probability of a 25bp cut by the US Federal Reserve in September is reflected at 61.6%. The probability of freezing in September was 32.3%. The possibility of a second interest rate cut in December this year was reflected as high at 45.1%.
By stock, despite Nvidia's decline, Alphabet A rose by 1.8%, and Amazon.com also rose by 1.6%. Qualcomm fell in the 1% range, and Apple and Meta Platforms (Facebook) also fell in the 1% range.
Large bank stocks fell. Stock prices of JP Morgan Chase, Bank of America, Citigroup, and Goldman Sachs all fell around 1%. It was reported that on this day, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) pointed out that there were flaws in the way the derivatives portfolio was organized in the living wills of some large banks submitted in 2023.
Sarepta's stock price jumped about 30% on the news that the U.S. Food and Drug Administration (FDA) approved new drug developer Sarepta Therapeutics' expanded use of its rare muscle disease treatment.
As for industry indices, those related to health, materials, real estate, and communications rose, but those related to energy, finance, industry, technology, and utilities fell.
The Chicago Board Options Exchange (CBOE) volatility index (VIX) was traded at 13.20, down 0.08 points (0.60%) from the previous day.
Cryptocurrency leader Bitcoin (BTC) fell to the $63,000 level at one point in a downward trend over the past 24 hours.
According to CoinMarketCap, as of 8:25 a.m. on the 22nd (Korean time), the price of 1 Bitcoin is $64,081, down 1.34% from 24 hours ago.
Bitcoin fell to a low of $63,378.89 on the day.
Into the Block, a cryptocurrency market data platform, said through “It is,” he said.
Additionally, Woominkyu, a CryptoQuant contributor, said, “Bitcoin tends to undergo adjustments when the ASOPR (Adjusted Spent Output Profit Ratio) indicator approaches 1.08.” He added, "The rise in this indicator generally occurs in a bull market, and in the past, when the indicator reached 1.08, the price entered a correction phase. As similar patterns have been observed in the past, there is a possibility that the current phase will follow the same path." Currently, the ASOPR indicator is recording 1.04.
Meanwhile, cryptocurrency trader Justin Bennett warned that if the stock market crashes, BTC and cryptocurrencies in general will be hit. He told his 110,800 followers on social media platform .
