[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York Stock Exchange fell again, casting a shadow over the September market.
On the 14th (local time), the Dow Jones Industrial Average dropped 292.06 points (0.84%) to close at 34,577.57, the S&P 500 fell 25.68 points (0.57%) to 4,443.05, and the Nasdaq dropped 67.82 points (0.45%) to 15,037.76.
The major indices initially rose following news that the August Consumer Price Index (CPI) increase was lower than expected but soon turned bearish and ultimately closed down. Concerns that the economic recovery could slow down weighed on the market.
According to a survey by Bank of America of global fund managers, only 13% responded that the world economy would improve over the next 12 months. This is a 14 percentage point drop compared to the same survey in August and the lowest level since April last year.
This indicates a growing negative outlook on future growth among fund managers.
After rising following five consecutive days of decline the previous day, both the Dow and S&P 500 fell again, while the Nasdaq continued its decline. Historically, September has generally been a weak month for the stock market. The S&P 500 has fallen 1.8% so far this month but still shows an 18% gain since the beginning of the year.
Although the stock market showed weakness, the yield on the U.S. 10-year Treasury note dropped to the 1.28% range that day. This reflects expectations that a tapering decision is unlikely at next week’s FOMC regular meeting. The rise in Treasury prices caused the dollar index to weaken during the session. Due to the decline in Treasury yields and the dollar index, gold prices recovered to $1,800 per ounce.
The drop in Treasury yields caused bank stocks to plunge collectively. Energy stocks, which had rebounded the day before, showed weakness.
Apple fell more than 1% immediately after unveiling the iPhone 13 but trimmed losses to close down 0.96%. Apple’s stock price has mostly declined on the day of new iPhone announcements.
Most major tech stocks fell, but Microsoft closed up 0.94%.
German company CureVac plunged 8% after news broke that negotiations related to COVID-19 vaccine manufacturing had been halted.
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