Thursday, December 12, 2024

Wall Street Takes a Dive as Market Rally Comes to a Halt

On December 9th, the three major indices of the New York Stock Exchange ended their record breaking streak, experiencing a decline. Following the failed impeachment attempt against South Korean President Yoon Suk Yeol over the weekend, the won-dollar exchange rate surged, triggering a sharp decline in Korean exchange-traded funds (ETFs) listed on the New York Stock Exchange and significantly devaluing Korean assets. / UPI reported
On December 9, the three major New York Stock Exchange indices ended their record-breaking streak, experiencing a decline. Following the failed impeachment attempt against South Korean President Yoon Suk Yeol over the weekend, the won-dollar exchange rate surged, triggering a sharp decline in Korean exchange-traded funds (ETFs) listed on the New York Stock Exchange and significantly devaluing Korean assets. / UPI reported

The New York stock market saw a broad sell-off on Monday.

The three major indices halted their record-breaking streak, falling around 0.6%.

News of China launching an investigation into NVIDIA for potential antitrust violations, released the night before, contributed to the downward pressure on the indices. NVIDIA, which joined the Dow Jones Industrial Average on November 8, is now part of all three major New York Stock Exchange indices, including the S&P 500 and Nasdaq.

NVIDIA’s 2.6% plunge on Monday weighed heavily on the major indices.

Meanwhile, the aftermath of the failed impeachment against President Yoon Suk Yeol led to a sharp rise in the won-dollar exchange rate, significantly devaluing Korean assets in New York’s financial markets.

Major Indices Retreat

All three indices closed lower.

The Dow Jones Industrial Average dropped 240.59 points (0.54%) to 44,401.93.

The S&P 500 lost 37.42 points (0.61%), closing at 6,052.85, while the Nasdaq Composite fell 123.08 points (0.62%) to end at 19,736.69.

The CBOE Volatility Index (VIX), Wall Street’s “fear gauge,” spiked over 10%.

The main factors behind the increase were the heightened uncertainty among investors ahead of the upcoming Federal Open Market Committee’s last meeting of the year on December 17 to 18 and the Labor Department’s release of the November Consumer Price Index (CPI) on December 11.

The VIX surged 1.42 points (11.12%) to 14.19.

South Korean Assets Plunge

The South Korean won’s sharp depreciation against the dollar prompted investors to dump Korean assets.

The won-dollar exchange rate climbed 4.28 won (0.30%) to 1,428.42 won per dollar.

The iShares MSCI Korea ETF (EWY), which invests in South Korean stocks, tumbled $1.29 (2.35%) to $53.67 compared to its closing price on December 6.

The fund has plummeted 18% this year, starkly contrasting the S&P 500’s 27% rally.

Individual South Korean stocks also struggled.

Korea Electric Power (KEP) plunged $0.34 (4.42%) to $7.35, while KB Financial Group dropped $1.71 (2.84%) to $58.48.

KT Corporation fell 2.45%, POSCO Holdings declined 2.62%, and SK Telecom slipped 1.15%.

Tesla Soars as NVIDIA Stumbles

The Magnificent Seven tech giants showed mixed performances.

NVIDIA shares closed down $3.63 (2.55%) at $138.81 following reports of China’s antitrust probe.

On the other hand, Tesla initially surged over 4% to $404.80 before dropping 2.88% to $378.01. However, a late surge in buying pressure enabled Tesla’s stock to recover, ending the day up $0.57 (0.15%) at $389.79.

Among M7, Apple stood out with a notable gain, climbing $3.91 (1.61%) to $246.75.

Quantum Computing Socks Diverge

Google published a groundbreaking paper in Nature, demonstrating progress in overcoming a significant barrier in quantum computing. This led to mixed reactions in the quantum computing sector.

Alphabet, Google’s parent company, edged up $0.86 (0.49%) to $175.37, while its competitors faced significant losses.

IonQ, a leading quantum computing startup, plummeted $3.73 (9.82%) to $34.24, while Quantum Computing Inc. tumbled $0.46 (5.80%) to $7.47.

IBM also felt the pressure, dropping $8.04 (3.38%) to $230.00.

Oil Prices Rebound After Four Days

International oil prices rebounded after four consecutive days of declines.

Heightened geopolitical uncertainty in the Middle East, following victories of the rebel forces in the Syrian civil war and the collapse of Bashar al-Assad’s regime, contributed to the surge in oil prices.

Additionally, expectations of rebounding demand from China, the world’s largest oil importer, fueled the rise. During a Politburo meeting, Chinese President Xi Jinping hinted at potential economic stimulus measures for the coming year, which fueled anticipation of increased oil consumption.

International oil price standard Brent crude futures for February delivery rose $1.02 (1.43%) to settle at $72.14 per barrel.

U.S. oil price standard West Texas Intermediate (WTI) crude for January delivery climbed $1.17 (1.74%), closing at $68.37 per barrel.

Hot this week

Snack Attack: How Your Favorite Processed Treats Could Lead to Cancer

A study shows ultra-processed foods increase colorectal cancer risk by suppressing the immune system and promoting inflammation.

Is Luigi Mangione a Murderer or a Martyr? Public’s Mixed Reactions to the UHC CEO’s Death

Luigi Mangione, arrested for the murder of UHC CEO, is seen as a hero by some due to his critical views on insurance companies.

Trump Calls Canada the ’51st State’ – Is He Serious or Just Joking?

Trump humorously referred to Canada as a U.S. state, which may offend Canadians and spark diplomatic issues over tariffs.

Merriam-Webster Declares ‘Polarization’ the Word of the Year: A Reflection of America’s Divided Landscape

Merriam-Webster has chosen "polarization" as its Word of the Year for 2024, reflecting societal divisions in the U.S. and beyond.

Digital Exodus: Telegram Downloads Skyrocket Amid Political Turmoil

Following martial law, Telegram installations surged dramatically in South Korea, highlighting concerns over communication censorship.

Topics

Snack Attack: How Your Favorite Processed Treats Could Lead to Cancer

A study shows ultra-processed foods increase colorectal cancer risk by suppressing the immune system and promoting inflammation.

Is Luigi Mangione a Murderer or a Martyr? Public’s Mixed Reactions to the UHC CEO’s Death

Luigi Mangione, arrested for the murder of UHC CEO, is seen as a hero by some due to his critical views on insurance companies.

Trump Calls Canada the ’51st State’ – Is He Serious or Just Joking?

Trump humorously referred to Canada as a U.S. state, which may offend Canadians and spark diplomatic issues over tariffs.

Merriam-Webster Declares ‘Polarization’ the Word of the Year: A Reflection of America’s Divided Landscape

Merriam-Webster has chosen "polarization" as its Word of the Year for 2024, reflecting societal divisions in the U.S. and beyond.

Digital Exodus: Telegram Downloads Skyrocket Amid Political Turmoil

Following martial law, Telegram installations surged dramatically in South Korea, highlighting concerns over communication censorship.

Nvidia Faces Antitrust Scrutiny from China: Could This Change the Game?

China has launched an investigation into NVIDIA for potential antitrust violations related to its acquisition of Mellanox.

Trump Launches New Perfume with Bold Slogan: ‘Fight, Fight, Fight’

Trump launches a new perfume called "Fight, Fight, Fight," promoting it as a perfect Christmas gift amid his merchandise ventures.

Questions Arise: Can a President Under Investigation Command the Military?

The Ministry of National Defense confirmed President Yoon Suk Yeol retains command of the armed forces despite insurrection investigations.

Related Articles