Mixed Trends in NY Stock Market for Two Consecutive Days: Energy Stocks Rise, Tech Stocks Fall

[Asia Economy New York=Correspondent Baek Jong-min] Amid concerns over the US Federal Reserve's inflation response, major indices on the New York Stock Exchange closed mixed for the second consecutive day.

[Image source=Reuters Yonhap News]

On the 23rd (local time), the Dow Jones Industrial Average rose 194.55 points (0.55%) to close at 35,813.80, the S&P 500 increased by 7.76 points (0.17%) to 4,690.70, and the Nasdaq fell 79.62 points (-0.50%) to 15,775.14.

On this day, the Dow rose again as cyclical stocks showed strength. The Nasdaq significantly narrowed its losses by the close, and the S&P 500 overcame its decline to turn positive.

Following Fed Chair Jerome Powell’s announcement of his reappointment and his commitment to strengthening inflation measures the day before, US Treasury yields continued to rise, causing technology stocks to remain weak on this day as well.

The 10-year US Treasury yield rose by 0.057 percentage points to 1.682%, approaching 1.7%. Rising Treasury yields weigh on technology stocks.

Zoom, a company that benefited most from COVID-19, saw its stock plunge 14.7% after signaling potential future earnings weakness. Deutsche Bank lowered Zoom’s price target from $350 to $280.

Meta, Microsoft, and Alphabet shares declined, but Amazon and Apple shares rose ahead of Black Friday.

Semiconductor company Western Digital surged 6.3% following Mizuho Securities’ price target upgrade.

Unlike technology stocks, bank stocks were strong due to the rise in Treasury yields. Banks such as JPMorgan and Bank of America rallied by over 2%.

Electronics retailer Best Buy plunged 12% amid evaluations that its earnings fell short of expectations.

Despite the US announcement of strategic petroleum reserve releases, energy-related stocks rose across the board. Chevron increased by 2%, and Occidental Petroleum surged 6%.

The situation among electric vehicle companies was mixed. Tesla fell 4%, barely maintaining the 'Thousand-Eleven Tesla' level, while Rivian and Lucid closed higher.