[Asia Economy New York=Correspondent Baek Jong-min] Technology stocks plummeted across the board in the New York stock market. The Dow Jones Industrial Average, which had been showing strength despite the decline in tech stocks, also reversed to a decline near the end of trading.
On the 10th (local time), the Dow Jones Industrial Average fell 34.94 points (0.10%) to close at 34,742.82, the S&P 500 index dropped 44.17 points (1.04%) to 4,188.43, and the Nasdaq index plunged 350.38 points (2.55%) to finish at 13,401.86.
Technology stocks declined sharply from the market open. Bloomberg News noted that concerns over rising commodity prices fueling inflation weighed on tech stocks.
Bloomberg forecasted that the consumer price index (CPI) inflation rate for April, to be released on the 12th, could heighten inflation worries. Reflecting these inflation concerns, the U.S. 10-year Treasury yield climbed back above 1.6% near the end of trading.
The tech stock plunge dragged down the Dow as well. The Dow briefly surpassed the 35,000 mark for the first time ever during the session, buoyed by gains in petrochemical stocks, but failed to maintain the upward momentum.
ExxonMobil and Chevron shares rose more than 2% intraday but later trimmed gains to close up 0.24% and down 0.25%, respectively.
The June West Texas Intermediate (WTI) crude oil price closed up 2 cents (0.02%) at $64.92 per barrel. Speculative sentiment was limited as Colonial Pipeline, which had halted operations due to a hacking incident that had driven oil prices higher, announced plans to resume normal operations by this weekend. Gasoline futures, which surged 4% the previous day, closed up 0.31% at $2.13 per gallon.
Major tech stocks all tumbled. Apple, Microsoft, and Amazon each fell between 2% and 3%. Alphabet and Facebook dropped 2% and 4%, respectively, influenced by a Citigroup report forecasting declines in advertising revenue.
Electric vehicle maker Tesla plunged 6.4%. This was attributed to news that the state of California agreed to impose a $1 million fine related to air quality regulation violations at Tesla’s factory.
The sharp decline in tech stocks caused Cathie Wood’s ARK Innovation ETF to fall 5%, marking its lowest level since November last year.
German biotech company BioNTech, related to vaccines, saw its stock rise more than 10% after reporting first-quarter net profit and sales that significantly exceeded market expectations. Meanwhile, Moderna’s shares remained weak.
Cryptocurrency exchange Coinbase, whose stock had been steadily declining since its listing, rebounded with an 11% increase. In contrast, Coupang fell 4.7% to close at $37, hitting its lowest price since listing. Coupang’s recent sharp decline threatens its IPO price of $35.
Cryptocurrencies showed mixed results. Bitcoin dropped 4.5% to trade in the $55,000 range, while Dogecoin fell 20% to around 45 cents. Ethereum, after surpassing $4,000 for the first time ever, pulled back slightly to trade in the $3,900 range.
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