[New York Stock Market] Broad Decline Amid Weak Economic Indicators... Nasdaq Down 2.98%

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Major stock markets in New York, USA, closed lower across the board on the 28th (local time) as they failed to find a rebound point amid weak economic indicators and other factors.

On this day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 491.27 points (1.56%) from the previous session to close at 30,946.99. The S&P 500 index, centered on large-cap stocks, closed at 3,821.55, down 78.56 points (2.01%), and the tech-heavy Nasdaq index ended the day at 11,181.54, down 343.01 points (2.98%).

By sector, declines were prominent in technology and consumer goods stocks. Semiconductor stock AMD closed down 6.24% from the previous session. Nvidia fell 5.26%, and Marvell Technology slipped 4.89%. Tesla dropped 5%, breaking below the 700-dollar mark. Qualcomm rose more than 3% following analysis suggesting its modem could be used in Apple iPhones.

Consumer goods and retail stocks showed weakness as the consumer confidence index released that day fell short of market expectations. Bath & Body Works dropped nearly 6%. Home Depot (-4.44%), Lowe's (-5.16%), and Macy's (-4.06%) also closed lower in unison. Nike plunged nearly 7% despite quarterly earnings exceeding market forecasts, citing expected disruptions to future performance due to China's COVID-19 lockdowns and other impacts.

On the other hand, casino stocks showed strength. With China easing quarantine regulations for overseas arrivals, Wynn Resorts and Las Vegas Sands closed up 3.15% and 4.04%, respectively.

Disney (-0.71%) showed gains in the morning session on news of the reopening of Shanghai Disneyland but closed lower in the afternoon. Delta Air Lines and United Airlines also rose in the morning session due to China's easing of quarantine rules but ended trading slightly down. Wells Fargo and Goldman Sachs rose on dividend increase news but later turned downward.

Investors closely watched the economic indicators and remarks surrounding recession released that day.

The U.S. Conference Board's June Consumer Confidence Index recorded 98.7, falling well below both the previous month (103.2) and expert forecasts (100). This indicator came amid growing recession concerns due to the Federal Reserve's aggressive interest rate hikes. Additionally, the Conference Board reported that the 12-month expected inflation rate reached 8% in June, the highest level since 1987.

U.S. home prices continued their rapid rise in April, maintaining a 20%+ increase, but the rate of increase slightly slowed, showing signs of a cooling trend. The S&P CoreLogic Case-Shiller Home Price Index, which measures average home price trends in major cities, rose 20.4% year-over-year in April. The month-over-month increase was the lowest since November last year. CNBC evaluated this as "the first potential sign that the U.S. housing price overheating is starting to cool."

Remarks about recession also poured in. However, these comments revealed differing views between the central bank and the market. John Williams, President of the Federal Reserve Bank of New York, said in a CNBC Squawk Box interview that "growth this year will slow significantly compared to last year," but added, "this is not a recession. It is a slowdown in the economy that we need to see to ease inflationary pressures and bring inflation down."

On the other hand, Cathie Wood, CEO of Ark Investment and known as the "Money Tree Sister," argued that the U.S. economy is already in recession. She said, "We believe we are already in a recession," adding, "inventory is a big problem. I've never seen inventory build up this much in my 45-year career." She also admitted to underestimating the severity and persistence of inflation.

Market experts are observing that the bottom has not yet been reached. Voices suggest that a wait-and-see stance will continue for the time being without any significant catalysts for a rise.

In the New York bond market that day, the yield on the U.S. 10-year Treasury slipped to the 3.18% range. A decline in bond yields indicates a rise in prices of safe-haven bonds.

International oil prices rose for the third consecutive trading day due to supply concerns. On the New York Mercantile Exchange, August West Texas Intermediate (WTI) crude oil closed at $111.76 per barrel, up $2.19 (2.00%) from the previous session.