Facebook Disappoints, Nvidia Surges... NY Stock Market Closes Strong

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The major indices on the New York Stock Exchange continued their strong performance. Although Facebook's stock plunge weighed on the indices, the upward momentum still persisted. Semiconductor company Nvidia hit a record high following Facebook's announcement of increased investment.

On the 26th (local time), the Dow Jones Industrial Average rose 15.73 points (0.04%) to close at 35,756.88, the S&P 500 index increased 8.31 points (0.18%) to 4,574.79, and the Nasdaq index climbed 9.01 points (0.06%) to finish at 15,235.71.

The Dow index marked its third consecutive day of gains, and the S&P 500 index achieved its second straight day of record highs, though the gains were modest.

Tesla appeared to continue its upward trend after surpassing a market capitalization of $1 trillion and a stock price of $1,000 the previous day, but turned bearish in the afternoon session, closing down 0.6% at $1,018. Tesla's stock price had risen to as high as $1,094.94 early in the trading session.

General Electric (GE) rose 1.99% on the back of strong net income and upward revisions to its earnings outlook. UPS also surged 6.84% following its earnings announcement.

Nvidia gained nearly 7% amid expectations that Facebook's announcement of large-scale capital expenditures could lead to increased sales.

Facebook's stock fell 3.92% after the market closed the previous day due to revenue figures that missed expectations. The stock started flat but at one point plunged as much as 5%. CNBC reported that Facebook's stock decline weighed on the overall indices. Wedbush Securities lowered Facebook's price target from $350 to $325.

The special purpose acquisition company (SPAC) 'Digital World Acquisition' (DWAC), which is set to merge with the social media platform to be launched by former President Donald Trump, plunged 30%. Punware, which handled digital advertising for former President Trump, saw its stock drop 40%.

Robinhood rose 1.6% during regular trading but fell 8.5% in after-hours trading amid evaluations that its earnings fell short of expectations.

On the day, the U.S. 10-year Treasury yield slightly declined to 1.61%. CNBC reported that Treasury yields fell amid expectations that the Federal Reserve is likely to announce tapering of asset purchases next week.

Despite renewed prospects for the resumption of Iran nuclear talks, international oil prices hit their highest levels in seven years again.

At the New York Mercantile Exchange, December West Texas Intermediate (WTI) crude oil prices closed at $84.65 per barrel, up $0.89 (1.06%) from the previous session. This is the highest level since October 13, 2014, when prices reached $85.74.

Cryptocurrencies saw Bitcoin fall 1.75% to $61,989, while Ethereum rose 1.74% to trade at $4,277.