[New York Stock Market] Weakness Due to Profit-Taking Selling... Nasdaq Down 1.19%

The three major stock indices of the U.S. New York Stock Exchange closed lower on the 30th (local time) amid year-end profit-taking selling pressure.

On that day in the New York stock market, the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 42,573.73, down 418.48 points (0.97%) from the previous trading day. The S&P 500, focused on large-cap stocks, fell 63.9 points (1.07%) to 5,906.94, and the Nasdaq, centered on technology stocks, ended trading down 235.25 points (1.19%) at 19,486.78.

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Due to broad selling pressure that day, all 11 sectors of the S&P 500 declined.

By individual stocks, Boeing, an aircraft manufacturer, closed down 2.31% affected by the Jeju Air crash incident. Big tech stocks also showed weakness. Tesla fell 3.3%, Meta Platforms 1.43%, Amazon.com 1.1%, Apple 1.33%, and Microsoft (MS) 1.3%, all closing lower. However, Nvidia rose 0.48%.

MicroStrategy plunged 8.19% after disclosing in a document submitted to regulators that it sold more than 592,000 shares between the 23rd and 29th.

With a forecast of severe cold in the U.S. East in January next year, natural gas company stocks are on the rise. EQT increased 5.12%, and Coterra Energy rose 3.57%. On that day, natural gas February futures on the New York Mercantile Exchange closed at $3.936 per MM BTU, up 16.35% from the previous session. This marked the largest one-day gain since January 27, 2022.

Investors are struggling with uncertainty ahead of the new year. This year, the S&P 500 and Dow Jones rose 24% and 13%, respectively, while the Nasdaq increased 30%. However, some express concerns that the market is losing momentum.

Jeremy Siegel, the Wharton School's honorary finance professor, said, "It seems the stock market will really pause briefly next year," adding, "The likelihood of a correction defined as a 10% drop in the S&P 500 next year is increasing."

Oliver Persche, Senior Vice President of Wellsfargo Advisors, said, "When trading volume is low, it doesn't take much to move the market," and added, "Perhaps we need to take a few chips off the table and protect profits."

There is analysis that the rise in bond market Treasury yields also influenced the stock market's downward trend. Due to concerns over the U.S. fiscal crisis, last week the U.S. 10-year Treasury yield, a global bond yield benchmark, surpassed 4.6%. However, as the stock market showed a decline that day, the 10-year Treasury yield fell 0.078% from the previous trading day to 4.541%, and the 2-year Treasury yield, sensitive to monetary policy, dropped 0.076% to around 4.25%.

International oil prices showed strength together with rising natural gas prices amid forecasts of severe cold and supply uncertainties from Ukraine. West Texas Intermediate (WTI) crude oil closed at $70.99 per barrel, up $0.39 (0.55%) from the previous session, and Brent crude, the global oil price benchmark, closed at $74.39 per barrel, up $0.22 (0.30%).