[New York Stock Market] "Persistent Negative Factors" Mixed Close in Narrow Range... Nasdaq Hits Another Year-to-Date Low

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Major indices on the U.S. New York stock market showed mixed movements within a narrow range on the 27th (local time). This was due to the ongoing simultaneous negative factors, including concerns about economic slowdown, that have not been resolved. The Nasdaq index, which had fallen nearly 4% the previous day marking its largest drop since September 2020, showed an upward trend in the early session supported by a rebound in tech stocks but gave up gains toward the end and ultimately closed at this year's lowest point.

On this day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 33,301.93, up 61.75 points (0.19%) from the previous session. The S&P 500, centered on large-cap stocks, rose 8.76 points (0.21%) to 4,183.96.

The tech-heavy Nasdaq index closed down 1.81 points (0.01%) at 12,488.93. The Russell 2000 index, composed of small-cap stocks, fell 6.44 points (0.34%) to 1,884.04.

The New York stock market showed a significant deterioration in investor sentiment as concerns about economic slowdown due to China's COVID-19 lockdown measures and worries over corporate earnings persisted. High inflation and fears of Federal Reserve (Fed) tightening also continued. The early session's rebound buying following the previous day's sharp decline turned into weakness in the afternoon. Jodan Krinsky of BTIC said, "We are maintaining a cautious stance," and assessed that "the trend is still downward."

Individual stocks showed mixed results depending on earnings outlooks. Microsoft rose 4.81% after the market close the previous day as its earnings exceeded expectations. Visa jumped more than 6% after quarterly earnings beat forecasts. Solar company Enphase Energy also saw gains approaching 8%.

On the other hand, Alphabet, Google's parent company, fell more than 3% after reporting earnings below expectations. Boeing's shares slid over 7% on news of an expanded net loss. Robinhood's stock dropped nearly 5% following news of a 9% reduction in full-time staff.

Mattel, the maker of Barbie dolls, closed up 10.76% amid reports of acquisition talks with private equity firm Apollo Global. Some tech stocks such as Nvidia (-1.99%), AMD (-0.29%), and Apple (-0.15%) continued their weakness from the previous day due to concerns about economic slowdown and tightening.

After the market close, Meta Platforms, Qualcomm, PayPal, and Ford are scheduled to release their first-quarter earnings. Meta closed the regular session down 3.32% ahead of its earnings announcement.

Market experts pointed out that multiple simultaneous negative factors continue to affect the market. Art Hogan, market strategist at National Securities, evaluated, "Persistent inflation, Fed tightening, the Ukraine war, and China's zero-COVID policy are acting as ongoing headwinds for the April stock market." The Nasdaq index has fallen more than 11% so far this month.

In the bond market, the 10-year Treasury yield rose slightly to around 2.83%. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as the fear gauge, fell more than 5% from the previous trading day but still remained above 31, indicating a high level.

New York crude oil prices showed an upward trend. On the New York Mercantile Exchange, June West Texas Intermediate (WTI) crude oil closed at $102.02 per barrel, up 32 cents (0.3%) from the previous session.