NY Stock Market Closes Lower Amid Inflation Indicator Concerns

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The major indices of the New York stock market showed weakness ahead of the release of the Consumer Price Index (CPI), which will reveal the inflation situation. The Nasdaq, in particular, experienced a significant decline.

On the 9th (local time), the Dow Jones Industrial Average fell by 0.06 points (0.00%) to close at 35,754.69, the S&P 500 dropped 33.76 points (0.72%) to 4,667.45, and the Nasdaq index declined 269.62 points (1.71%) to finish at 15,517.37.

Although the weekly unemployment data released before the market opened continued to show positive results, there was widespread caution regarding the CPI release, which could potentially trigger the Federal Reserve's decision to reduce asset purchases.

The number of weekly initial jobless claims in the U.S. was 184,000, marking the lowest level since 1969.

If the CPI surges amid employment improvements, the Fed is likely to accelerate the pace of tapering. The market expects the November CPI to rise by 6.8%. The October CPI had increased by 6.2%.

The Fed is expected to discuss accelerating the tapering pace of its asset purchase program at the Federal Open Market Committee (FOMC) regular meeting scheduled for the 14th-15th. If the Fed raises the tapering amount from $15 billion to $30 billion per month, tapering will conclude by March next year.

In this case, the foundation for an early interest rate hike will be laid. The Chicago Mercantile Exchange FedWatch tool forecasts a 57% chance of a rate hike in May next year.

The yield on the U.S. 10-year Treasury note closed slightly lower at 1.497% compared to the previous day.

American Airlines' stock fell about 0.4% following news that it will reduce international flights next summer due to delays in Boeing's 737 Dreamliner deliveries, while Boeing's stock dropped about 1.6%.

As COVID-19 spreads prominently in the U.S., travel-related stocks reversed their recent rebound and closed lower.

The "meme stock" GameStop fell more than 10% due to the announcement of increased losses made the day before.

Amazon's stock dropped over 1% following news that the Italian government imposed a $1.3 billion antitrust fine.

Pharmacy chain CVS shares rose more than 4% after raising its annual outlook and announcing a share buyback plan.

The semiconductor sector showed notable declines. AMD fell 5%, and Nvidia dropped 4.2%.

Apple closed down 0.3% ahead of surpassing a $3 trillion market capitalization.