Shares of Apple, the world’s No. 1 company by market capitalization, plunged for the second consecutive day this year. Tesla, which gave China BYD the top spot in deliveries such as electric vehicles, plunged more than 4%. Nvidia, AMD, and Meta also fell for the second day in a row. Microsoft also fell. Tech stocks seem to be losing power in the new year,
Apple shares closed at 184.25 U.S. dollars on Wednesday (local time), down 0.75 percent from the previous day. On the previous trading day, Apple closed at 185.64 dollars, down 3.58 percent. The stock price is at its lowest level in three weeks since mid-April.
Microsoft, which closed the gap with Apple, the No. 1 market capitalization, due to Apple’s plunge the previous day, also fell 0.07% from the previous trading day.
Tesla closed at 238.45, missing 4.01%.
Semiconductor giant Nvidia fell 1.24% from the previous trading day to $475.69. It plunged for the second straight day.
AMD also continued its downward trend, falling 2.35% from the previous trading day.
Meta fell 0.53%.
Shares of Coinbase, the exchange, also took a hit as the price of Bitcoin, the leading cryptocurrency stock, fell more than 10% at one point. It fell 2.96% from the previous trading day.
In the New York Stock Exchange, the Dow Jones Index, which focuses on blue-chip stocks, closed at 37,430.26, down 0.76% (285 points) from the previous day.
The S&P 500 index, centered on large stocks, also fell 0.80% to 470.81.
The tech-heavy Nasdaq Composite Index fell 1.18 percent to close at 14,592.21. It has fallen relatively sharply for two consecutive days.
In the new year, there is a clear movement to sell tech stocks.
Tech stocks are relatively winner stocks with a larger increase than other stocks last year. As the increase is large, the decline is also large.
Expectations were high that monetary policy would ease in 2024, but uncertainties are growing again over the U.S. Federal Reserve’s key rate cut. The yield on the 10-year Treasury bond once surpassed 4 percent.
The minutes of the U.S. Federal Open Market Committee (FOMC) released on the same day also showed that the Fed was not ready to cut interest rates. Contrary to expectations, the minutes even included claims of “additional interest rate hikes.”
SOPHIA KIM
US ASIA JOURNAL
