"Was the drop excessive?" US 3 major indices rise for second day... Tesla down 4.8%↓[New York Stock Market Briefing]

Retail sales figures fell short of expectations

Major indices in the New York stock market rose for the second consecutive trading day as bargain hunting inflows increased.

On the 17th (local time), the Dow Jones 30 Industrial Average closed at 41,841.63, up 353.44 points (0.85%) from the previous session at the New York Stock Exchange (NYSE). The Standard & Poor's (S&P) 500 index closed at 5,675.12, up 36.18 points (0.64%) from the previous trading day, and the Nasdaq index finished at 17,808.66, up 54.57 points (0.31%) from the previous session.

All three major indices rose for the second consecutive trading day. Bargain hunting continued today, as it did on the 14th. The February retail sales figures are estimated to have provided reassurance to the market. According to the US Department of Commerce, February retail sales increased by 0.2% month-over-month, falling short of expert forecasts of 0.6% compiled by Dow Jones.

However, investors focused on the fact that core retail sales (control group), a sub-indicator, increased by 1% from the previous month. Core retail sales exclude volatile items such as food services, automobiles, building materials, and gas station sales. As this figure is reflected in the calculation of Gross Domestic Product (GDP), it raised expectations that first-quarter growth might not be as bad as previously feared.

Geopolitical risks also appear to be easing. US President Donald Trump announced that he would have a phone call with Russian President Vladimir Putin on the 18th to discuss ending the war in Ukraine. The two sides have continued negotiations since last week when Ukraine and the US agreed to a 30-day temporary ceasefire.

Looking at individual stocks, Tesla plunged 4.8%. This came as the company announced it would offer free trials of its autonomous driving technology in China amid growing backlash against CEO Elon Musk's political activities. Some analysts also lowered Tesla's target price, with Mizuho Securities reducing its target from $515 to $430.

Intel rose 6.8% after announcing its restructuring strategy. Baidu also climbed about 9%, boosted by the Chinese government's consumption stimulus policies. AMD showed a 3.6% gain, thanks to experts' positive reviews of its data center business strengthening policy. Nvidia fell 1.8%, as US-China trade tensions continue to weigh on the company's future performance outlook.

Quantum computing related stocks like D-Wave Quantum (10.15%) and Quantum Computing (40.1%) surged as quantum computing technology gained attention ahead of Nvidia's artificial intelligence (AI) conference this week.

Olivier Pursche, Senior Vice President at Wealthspire Advisors, said, "Some rebound was expected because last week's sell-off was quite steep," adding, "The possibility that Russia and Ukraine could develop a ceasefire that could lead to permanent peace is a positive factor not only for the US but also for global markets."

Jin Young-gi, Hankyung.com reporter young71@hankyung.com