NY Stock Market Plummets... Weakness in Retail and Semiconductors, Vaccine Stocks Surge (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York Stock Exchange all fell due to sluggish retail sales in July.

On the 17th (local time), the Dow Jones Industrial Average dropped 282.12 points (0.79%) to close at 35,343.28, the S&P 500 index fell 31.63 points (0.71%) to 4,448.08, and the Nasdaq index declined 137.58 points (0.93%) to finish at 14,656.18.

The Dow and S&P 500, which had reached record highs the previous day, showed weakness reflecting concerns over declining consumer spending.

The U.S. Department of Commerce announced that retail sales in July decreased by 1.1% compared to the previous month. This result exceeded the market expectation of a 0.3% decline, as compiled by Dow Jones.

The possibility of weak consumer spending, which accounts for two-thirds of the U.S. economy, pressured investor sentiment; however, news that industrial production in July rose by a higher-than-expected 0.9% prevented further deterioration in market sentiment. The market had expected a 0.5% increase in industrial production for July.

Home Depot fell sharply by 4% due to disappointing results amid decreased demand for home renovations. Walmart posted results in line with expectations but remained slightly weak.

Online retail giant Amazon also dropped 1.7% amid concerns over declining consumer spending. Major tech stocks such as Apple, Alphabet, and Facebook also fell across the board.

Electric vehicle maker Tesla showed weakness for the second consecutive day, falling 2.98% due to an investigation by U.S. authorities into its autonomous driving features.

The possibility of a slowdown in the Chinese economy was also interpreted as a factor behind Tesla’s stock weakness. Boeing, which is highly dependent on China, also failed to avoid weakness.

The semiconductor sector declined due to concerns over sluggish growth in China. Nvidia fell 2.5%, marking two consecutive days of decline. The iShares Semiconductor ETF dropped 1.9%, and the Philadelphia Semiconductor Index also fell 1.98%.

COVID-19 vaccine stocks surged sharply after news of the spread of the Delta variant, the U.S. government's policy allowing booster shots for all citizens, and the UK’s approval of Pfizer vaccinations for children aged 12 and older. On that day, Moderna rose 7.4%, Pfizer 3.09%, and BioNTech 6.65%. Novavax, which has not yet received vaccine approval, also rose 2.2%.