[New York Stocks] Fall on Inflation Concerns; Nvidia Plunges 5.5%

[Financial News]  

New York stocks halted their rally on the 10th (local time) amid concerns about inflation.
The U.S. Consumer Price Index (CPI) for October came in 0.1 percentage point higher than expected. Governor Christopher J. Waller, a prominent moderate nominated by President Donald Trump in 2020, shook investor sentiment that day by saying at a monetary policy forum hosted by the Bank of England (BOE) that a 0.5-percentage-point rate hike may be needed in December. The yield on 10-year U.S. Treasuries, which serves as a benchmark for market interest rates, broke above the psychologically significant 5% level that day.
Nvidia, struggling with the ‘Chinese spy affair’ scandal involving CEO Jensen Huang, plunged another 5.5% that day. Semiconductor stocks overall, however, were not significantly affected.

After recovering from the shock of a sharp sell-off, New York stocks paused for now in their rebound, which began on the 6th.
The Dow Jones Industrial Average fell 157.86 points (0.30%) from the previous session to close at 52,231.89, while the S&P 500 dropped 29.01 points (0.38%) to 7,520.93.
The tech-heavy Nasdaq fell 187.26 points (0.74%) to 25,065.87, while the Nasdaq-100, made up of 100 large-cap technology stocks, lost 166.83 points (0.60%) to close at 27,740.80.
The ProShares UltraPro QQQ (TQQQ), a leveraged exchange-traded fund (ETF) that tracks three times the Nasdaq-100’s daily move, fell $1.02 (1.77%) to $56.56.
The CBOE Volatility Index (VIX), Wall Street’s ‘fear gauge,’ fell 0.41 points (2.06%) to 19.51.

Nvidia plunged $9.87 (5.53%) to close at $168.80. Its loss was even greater than the 4.3% decline the previous day. Shares fell 9.6% over two days.
About $400 billion (approximately 537 trillion won) in market capitalization was wiped out.
According to CNBC, Nvidia’s market capitalization at the close stood at $4.07 trillion, far below Apple’s $5.065 trillion.

The impact on semiconductor stocks was limited.
Micron fell $8.04 (1.10%) to $725.11, while Intel dropped $1.24 (2.09%) to close at $58.13.
SanDisk fell $26.52 (2.99%) to $859.99, while SK hynix’s American depositary receipts (ADRs) plunged $4.72 (3.51%) to close at $129.66.
The Roundhill Memory ETF (DRAM), a memory semiconductor exchange-traded fund (ETF), slid $1.14 (2.73%) to $40.64.
By contrast, AMD and Broadcom, which compete with Nvidia in the artificial intelligence (AI) chip market, advanced.
AMD rose $6.63 (1.30%) to $515.21, while Broadcom surged $12.50 (3.91%) to $331.98.
The iShares Semiconductor ETF (SOXX), an ETF investing broadly across the semiconductor sector, fell $0.17 (0.12%) to close at $146.59, a smaller decline than the drop in DRAM.
The Direxion Daily Semiconductor Bull 3X Shares (SOXL), a leveraged ETF investing in 30 major semiconductor stocks, slipped $0.14 (0.25%) to close at $56.06.

Big Tech stocks posted a mixed performance.
Apple fell $2.18 (0.62%) to close at $348.51, while Alphabet slipped $0.77 (0.27%) to $287.38.
Microsoft (MS) slid $12.02 (2.20%) to $533.16 amid the impact of Anthropic’s announcement. Anthropic unveiled a suite of AI-powered office software that runs on its own platform that day.
Palantir fell $0.38 (0.22%) to close at $168.82.
Amazon, by contrast, rose $3.94 (1.48%) to $270.87, while Meta Platforms edged up $0.02 (0.00%) to close slightly higher at $641.39.
Elon Musk’s Tesla and SpaceX continued their upward trend.
Tesla rose $1.73 (0.46%) to $379.78, while SpaceX gained $1.02 (0.72%) to close at $143.09.

[email protected] Song Gyeong-jae Reporter