New York Stock Market Declines Broadly
Notable Drop in Technology Stocks
[Asia Economy New York=Correspondent Baek Jong-min] As concerns over the escalating US-China conflict fueled a rise in safe-haven asset prices, international gold prices on the 24th (local time) hit an all-time high for the first time in nine years. Tesla's stock, which had been soaring, plunged sharply.
On that day at the New York Mercantile Exchange, August delivery gold closed at $1,897.50 per ounce, up 0.4% ($7.50) from the previous day. This surpassed the previous closing record of $1,891.90 per ounce set on August 22, 2011.
Following the US closure of the Chinese Consulate in Houston and China's retaliatory demand to close the US Consulate in Chengdu, gold prices surged intraday to $1,905.99. This was the highest intraday price since September 2011.
Major indices on the New York Stock Exchange showed weakness as the US-China conflict intensified alongside a correction in tech stocks. The Dow Jones Industrial Average fell 182.44 points (0.68%) to 26,469.89, the S&P 500 dropped 20.03 points (0.62%) to 3,215.63, and the Nasdaq declined 98.24 points (0.94%) to 10,363.18. On a weekly basis, the Dow fell 0.76%, the S&P 500 decreased 0.28%, and the Nasdaq dropped 1.33%.
On the same day, semiconductor company Intel's stock plummeted 16.2%. Although its Q2 earnings were better than expected, the outlook fell short of expectations, and the announcement of delays in the launch of its 7nm process new products triggered a sell-off.
Electric vehicle maker Tesla's stock also fell nearly 10% intraday, closing down 6.3%. Tesla's stock had risen to $1,677 the previous day on expectations of inclusion in the S&P 500 index but closed at $1,417 after two consecutive days of decline. Intraday, it even touched the $1,300 range. Wall Street experts said investors were selling Tesla shares to realize profits.
The IHS Markit July Manufacturing PMI released that day was 51.3, up from the previous month's confirmed figure of 49.8. This was the highest in six months and indicated that the PMI had moved from contraction to expansion. The Services PMI was 49.6, the highest in six months, but below the market expectation of 51.0.
September delivery West Texas Intermediate (WTI) crude oil closed up 0.5% ($0.22) at $41.29 per barrel.
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