NY Stock Market Falls Again... Reflecting FOMC Concerns

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York Stock Exchange failed to escape a weekly decline. The market is filled with caution ahead of the upcoming Federal Open Market Committee (FOMC) regular meeting scheduled for next week.

On the 17th (local time), the Dow Jones Industrial Average fell 166.44 points (0.48%) to close at 34,584.88, the S&P 500 index dropped 40.76 points (0.91%) to 4,432.99, and the Nasdaq index fell 137.96 points (0.91%) to 15,043.97.

The Dow recorded a decline for three consecutive weeks this week. This is the first time since September last year that the Dow has fallen for three straight weeks. The S&P 500 also declined for two consecutive weeks.

It was also interpreted that the simultaneous expiration of individual stock futures, stock options, stock index futures, and index options?known as the 'quadruple witching day'?contributed to the market weakness.

By sector, mining and commodity-related stocks continued their sharp decline due to falling commodity prices.

Freeport-McMoRan Copper & Gold, International Flavors & Fragrances, and Newmont all plunged together.

Core tech stocks such as Alphabet, Apple, Facebook, Amazon, and Microsoft also showed weakness as Treasury yields strengthened.

The U.S. 10-year Treasury yield rose by 0.03 percentage points to 1.363% on the day. An increase in Treasury yields means a decline in Treasury prices.

The rise in U.S. Treasury yields is attributed to positive economic indicators such as strong retail sales, which increased the likelihood that the Fed will provide further clues about tapering asset purchases at next week’s FOMC meeting. The University of Michigan’s preliminary consumer sentiment index for September, released on the day, also rose to 71 from 70.3 in August.

The Fed is scheduled to release a dot plot next week showing the committee members’ interest rate projections. If the dot plot signals an earlier timing for rate hikes, it could have a significant impact on the market.

At the end of the trading session, shares of Pfizer, BioNTech, and Moderna fell together after news that the FDA advisory committee rejected the recommendation for a Pfizer COVID-19 vaccine booster shot.