New York Stock Market Opens Mixed Amid Democratic Victory in Georgia Election

Core Tech Stocks Including Apple All Weaken Simultaneously
Dow Jones Index Led by Traditional Industries Shows Strength

Democratic candidates Warnock (left) and Ossoff competing in the Georgia Senate runoff election
[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] As the Democratic Party's control of the U.S. Senate becomes visible, the New York stock market opened mixed.

As of 9:50 a.m. on the 6th (local time), the Dow Jones Industrial Average was up 0.6% compared to the previous day. The S&P 500 index rose 0.13%. The Dow started flat and then expanded its gains, while the S&P 500 started down but turned upward.

The Nasdaq index is showing a relatively large decline of 0.6%. Nasdaq fell 1.2% immediately after the opening but the drop has somewhat narrowed.

Apple is down 2.8%, and Amazon is also down 1.65%. Zoom is falling 3.18%. Tesla, an electric vehicle company that could benefit from eco-friendly policies, is showing a sharp rise in the 3% range.

The larger drop in Nasdaq compared to the Dow and S&P 500 reflects concerns that if the Democrats control the Senate, they will push for economic recovery through active fiscal spending.

In this case, CNBC's analysis suggests that investors may flock to traditional industries rather than the technology sector, which benefited from the 'untact' trend due to the COVID-19 pandemic.

It is also expected that if the Biden administration raises corporate taxes, the impact on technology companies will be greater.

U.S. media judged that Democratic candidate Raphael Warnock defeated Republican Senator Kelly Loeffler in the Georgia Senate runoff vote, with the final tally nearing completion.

Democratic candidate John Ossoff is also engaged in a fierce battle with Republican Senator David Perdue and is currently leading. With 98% of the votes counted, Ossoff leads by 0.38 percentage points. Although the media has delayed declaring a winner, Ossoff has declared his victory.

If Ossoff's victory is confirmed, the Democratic Party will hold both Senate seats from Georgia and secure the majority in the Senate.