[New York Stock Market] Nasdaq Ends Three-Day Record Run; Semiconductors Turn Lower

[Financial News]  

The New York stock market fell across the board on the 23rd (local time).
The downturn was triggered after the September manufacturing and services indexes released by S&P Global that day surged to their highest levels in about five years, while inflationary pressures also intensified.
Michael S. Barr, a governor of the Federal Reserve System (Fed), stressed the need for another hike in October at a housing conference in Chicago, saying, "There is more work to do." U.S. Treasury yields surged across the board, weighing on stocks.
As Treasury yields rose, semiconductor stocks that had been climbing also turned lower across the board, while the Nasdaq ended its three-day record-setting run.

The Dow Jones Industrial Average posted the smallest decline among the three major indexes. The Dow fell 351.92 points, or 0.68%, from the previous session to close at 51,511.77.
The S&P 500, which broadly reflects market conditions, dropped 58.61 points, or 0.75%, to 7,706.03. The tech-heavy Nasdaq fell 308.24 points, or 1.13%, to finish at 26,936.04.
The Nasdaq-100, composed of 100 large technology stocks, slid 262.10 points, or 0.85%, to 30,470.29.
ProShares UltraPro QQQ (TQQQ), a leveraged exchange-traded fund that tracks three times the daily movement of the Nasdaq-100, plunged $2.04, or 2.53%, to close at $78.63.
The "Wall Street fear gauge," the Chicago Board Options Exchange (Cboe) Volatility Index (VIX), jumped 1.03 points, or 7.24%, to 15.24.

Although the gains narrowed later in the session, U.S. Treasury yields still rose sharply across the board.
Concerns grew that the U.S. economy may remain stuck with high inflation not only because of the oil supply shock caused by the war in Iran, but also amid demand growth fueled by an artificial intelligence (AI) investment boom. Anxiety intensified after Fed Governor Barr stressed the need for additional rate hikes.
The 10-year yield, a benchmark for global interest rates, surged 0.135 percentage points to 5.102%. It topped 5.4% intraday, reaching its highest level in 19 years since mid-2007.
The two-year yield climbed 0.118 percentage points to 4.895%, while the 30-year yield rose 0.089 percentage points to 5.392%.

Semiconductor stocks, which had continued to gain, turned lower as Treasury yields fluctuated and expectations of additional Fed rate hikes strengthened.
NVIDIA fell $3.36, or 1.47%, to close at $225.51, while Micron Technology dropped $24.28, or 2.22%, to $1,071.88.
SK hynix American Depositary Receipts (ADRs) fell $6.09, or 3.12%, to $189.28, while SanDisk plunged $70.47, or 3.73%, to finish at $1,816.57.
The Philadelphia Semiconductor Index (SOX) fell 155.55 points, or 1.23%, to 12,534.27. The Direxion Daily Semiconductor Bull 3X Shares (SOXL), a leveraged ETF that tracks three times the index's daily movement, plunged $5.70, or 3.75%, to $146.25.

Big Tech stocks posted mixed performances.
Alphabet plunged $11.82, or 3.37%, to close at $339.34, while Apple fell $2.73, or 0.80%, to $337.02.
Tesla, meanwhile, rose $1.22, or 0.32%, to $380.12, while Microsoft (MS) gained $2.59, or 0.52%, to $500.59.
Palantir Technologies surged $5.64, or 3.05%, to $190.63.

[email protected] Song Kyung-jae Reporter