The three major indices fell all at once due to the rise in the price index… Nike 12 plunges New York Stock Exchange Briefing

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The New York Stock Exchange fell as major indices showed an upward trend in inflation. Tech stocks and Nike stocks plummeted on earnings concerns.

On the 30th (local time) on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 28,725.51, down 500.10 points (1.71%) from the previous day. The Standard & Poor’s (S&P) 500 index fell 54.85 points (1.51%) to 3,585.62, and the Nasdaq index, centered on technology stocks, closed at 10,575.62, down 161.89 points (1.51%) from the battlefield.

The Dow closed below the 29,000 level for the first time since November 2020. The S&P 500 index hit a new low this year.

According to FactSet, a financial information company, the monthly decline in September was 8.8% for the Dow, 9.3% for the S&P 500, and 10.5% for the Nasdaq Index, respectively. All three major indices recorded declines of around 10%. This is the first time since 2009 that the S&P 500 and Nasdaq have declined for three straight quarters.

On the same day, the personal consumption expenditure (PCE) price index, one of the preferred inflation indicators of the Federal Reserve, shook the market. Data from the U.S. Department of Commerce showed that the core personal consumption expenditure (PCE) price index rose 4.9% in August compared to the same period last year. This is higher than the 4.7% increase expected by experts compiled by the Wall Street Journal and the previous month.

In August, the PCE price index rose only 0.3% from the previous month, but the core PCE price index excluding food and energy, which is highly volatile, rose 0.6% last month. It rebounded significantly from the previous record of zero (0.0%), and exceeded the WSJ’s estimate (0.5%). The PCE price index for August, which includes energy and food prices, rose 6.2% year-over-year, better than market expectations (6%).

Treasury bond yields rose slightly. The 10-year government bond yield traded at 3.81%, up 3bp from the previous market. The two-year Treasury bond yield moved around 4.25%, up 4bp.

The atmosphere of raising interest rates for a while continued. Fed Vice Chairman Rayle Brainerd said at a conference on Wednesday that monetary policy must be tightened for a while to have confidence that inflation is returning to its target.

Rising geopolitical tensions also had an impact on the stock market. Russian President Vladimir Putin announced the annexation of four occupied territories in Ukraine, saying it was irreversible. US President Joe Biden strongly criticized this and imposed massive sanctions on Russian officials, members of Congress, and groups.

Meanwhile, individual stocks also showed a downward trend as earnings were expected to be sluggish. Nike’s quarterly sales increased, but its share price plunged 12.8% on news that supply chain and inventory issues were hurting its profits. Lululemon shares also fell 6.89%.

Carnival, announcing the lower-than-expected earnings, plunged 23.26%. In the aftermath, Norwegian Cruise (-18.04%) and Royal Carrion (-13.16%) also showed a downward trend. Shares of Apple, which fell sharply the day before, fell about 3% on the same day. Major stocks such as Alphabet (-1.82%), Microsoft (-1.94%), Amazon (-1.57%) and Disney (-3.21%) also fell.

However, the share price of Micron Technology rose slightly on the news that the Japanese government decided to provide up to 46.4 billion yen (about 460 billion won) to Micron’s semiconductor plant to be built in Hiroshima Prefecture.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) fell 0.22 points (0.69%) to 31.62.

Hana Kim, reporter at Hankyung.com [email protected]