[New York Close] Rise on Big Tech Rebound... Sharp Surge in Jung Technology Stocks

[Photo by Reuters]

[Asia Economy Reporter Byunghee Park] The New York stock market closed higher on the 8th (local time) thanks to a rebound in tech stocks, which had been the main cause of recent index declines. Most tech stocks rose except for Meta. Reports that a Chinese government fund has started buying Chinese stocks also helped boost the indices, as Chinese tech stocks listed on the New York Stock Exchange surged significantly.

The Dow Jones Industrial Average closed at 35,462.78, up 1.06% from the previous trading day. The S&P 500 rose 0.84% to 4,521.54, and the Nasdaq Composite increased 1.28% to 14,194.45.

Large-cap tech stocks, including Apple (1.85%) and Microsoft (1.20%), which rank first and second in market capitalization, all rose together, leading the index gains. Amazon rose 2.20%. On the other hand, Meta fell 2.1%.

Chinese tech stocks listed on the New York Stock Exchange also surged. The previous day's report that a Chinese government fund had started buying stocks in the Chinese stock market appeared to act as a positive catalyst.

Alibaba's stock price jumped 6.17% on the New York Stock Exchange. Baidu and JD.com shares also rose 4.75% and 3.02%, respectively. The Nasdaq Golden Dragon China Index, which reflects the stock prices of Chinese companies listed on the New York Stock Exchange, surged 3.9% that day.

The fortunes of Pfizer and Harley-Davidson, which announced their fourth-quarter earnings last year, diverged. Pfizer fell 2.84% due to sales results that fell short of expectations. In contrast, Harley-Davidson's stock price surged 15.53% after reporting better-than-expected fourth-quarter net income last year.

Nvidia's stock rose 1.54% after the ARM acquisition fell through.

Peloton's stock price surged 25.28% after co-founder and CEO John Foley agreed to step down following demands from activist fund Blackwells Capital.

The U.S. Department of Commerce announced before the opening of the New York Stock Exchange that the trade deficit for December last year was $80.7 billion. The U.S. annual trade deficit for last year was $859.1 billion (approximately 1,029.6 trillion KRW), a 26.9% increase compared to 2020. In particular, the trade deficit with China reached $355.3 billion, a 15% increase compared to 2020. Last year's trade deficit with China approached the record high of $375.2 billion set in 2017.

Despite the U.S. and China reaching a Phase One trade agreement in January 2020, the increase in the trade deficit with China raises the possibility of renewed trade conflicts between the two countries. Under the Phase One trade agreement, China promised to purchase an additional $200 billion worth of U.S. products over two years until the end of 2021, but the actual purchase amount is estimated to have fallen significantly short of the target.