PiCK
[New York Stock Market Briefing] Major indices fall due to profit-taking... Apple down 4%
Summary
- It was reported that the major indices of the U.S. New York Stock Exchange showed a downward trend due to profit-taking.
- It was stated that Apple's poor sales in China led to a drop of more than 4% in its stock price, affecting the index decline.
- It was reported that TSMC is expected to improve its performance due to AI-related demand.
The three major indices of the U.S. New York Stock Exchange fell simultaneously. It is estimated that profit-taking occurred. Apple, the largest by market capitalization, fell more than 4%, increasing downward pressure.
On the 16th (local time) at the New York Stock Exchange (NYSE), the Standard & Poor's (S&P) 500 Index closed at 5937.34, down 12.57 points (0.21%) from the previous session. The Nasdaq Index fell 172.94 points (0.89%) to 19,338.29, and the Dow Jones 30 Index closed at 43,153.13, down 68.42 points (0.16%).
The stock indices generally showed weakness due to fatigue from the previous day's surge and the desire for profit-taking. By sector, technology fell more than 1%, and consumer discretionary and communication services fell nearly 1%. Real estate and utilities rose more than 2%, and industrials were strong at over 1%.
Retail sales were somewhat sluggish. The U.S. Department of Commerce announced that U.S. retail sales (retail and food services) in December increased by 0.4% to $729.2 billion on a seasonally adjusted basis compared to the previous month. It was below the revised figure for the previous month (0.8%) and the market expectation (0.6%). However, experts believe that the impact on the market will not be significant as the figures reflected in the Gross Domestic Product (GDP) estimates are solid. The number of new unemployment insurance claims for the week was 217,000, an increase of about 14,000 from the previous week, but the absolute number remains low.
Looking at individual stocks, Apple fell 4.04% in one day. It was the largest drop since August 5 last year (4.82% drop). This news came as iPhone sales in China were reported to be sluggish. Market research firm Canalys analyzed that Apple's smartphone market share in China fell to third place, behind Vivo and Huawei.
Tesla also fell more than 3%, and NVIDIA, Amazon, and Alphabet fell more than 1%. However, TSMC rose 3.86%. TSMC's fourth-quarter net profit increased by 57% year-on-year to 374.68 billion Taiwan dollars (about 16.57 trillion won), the highest on a quarterly basis. Experts expect TSMC's performance to continue to improve as demand related to artificial intelligence (AI) steadily increases.
Jinyoung Ki, Hankyung.com reporter young71@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
