[New York Stock Market] Ends Mixed... Nasdaq Slumps on Sharp Drop in SpaceX

International Oil Prices Fall as U.S. Allows Iranian Crude Exports
SpaceX Plunges for Third Consecutive Session

On June 22 (local time), the three major indices of the New York Stock Exchange ended mixed. Despite news that the United States had allowed exports of Iranian crude oil during follow-up peace talks held in Switzerland, investor sentiment was dampened due to a sharp decline in SpaceX shares.

On the New York Stock Exchange, the blue-chip Dow Jones Industrial Average closed at 51,712.71, up 148.01 points (0.29%) from the previous trading day. The large-cap S&P 500 Index fell by 27.79 points (0.37%) to 7,472.79, while the tech-heavy Nasdaq Index dropped 351.33 points (1.33%) to close at 26,166.60.

Inside the New York Stock Exchange. New York (USA) - Special Correspondent Yoonju Hwang

The market on this day was influenced by the ongoing follow-up negotiations between the United States and Iran, as well as the sharp decline in SpaceX shares. Major technology stocks, led by SpaceX, fell and dragged down the indices.

According to foreign media reports, SpaceX decided to issue corporate bonds worth 20 billion dollars on this day. Its share price plummeted by 16.43%, marking a third consecutive day of decline. In addition, Nvidia fell by 0.97%, Alphabet by 4.99%, Amazon by 4.75%, Meta by 2.32%, Apple by 0.34%, and Microsoft (MS) by 3.18%, all closing lower.

Ulrike Hoffmann-Burchardi, Chief Investment Officer at UBS, stated, "Geopolitical developments are highly likely to act as a key factor driving volatility in the short term," but also diagnosed, "Changes in investor confidence regarding the sustainability of the artificial intelligence (AI) rally can also cause market fluctuations."

Matt Maley of Miller Tabak also pointed out, "The most prominent issue is that hyperscale companies are making massive investments in AI, yet the return on investment remains extremely low."

International oil prices fell. This was due to the announcement that the United States and Iran had agreed on a roadmap to reach a final agreement within 60 days. U.S. Vice President J.D. Vance evaluated the first follow-up talks as "very successful." In particular, the news that the U.S. Treasury would lift sanctions on the sale of Iranian crude oil for 60 days also impacted oil prices.

On the New York Mercantile Exchange, July delivery West Texas Intermediate (WTI) crude closed at 74.82 dollars per barrel, down 2.32% from the previous session. On the ICE Futures Exchange, August delivery Brent crude settled at 77.90 dollars per barrel, down 3.31% from the previous session.

On Wall Street, the key test for the market this week is seen as the release of the May Personal Consumption Expenditures (PCE) price index. CNBC reported, citing a survey of economists, that core PCE for May is expected to rise compared to April.

Since the hawkish tone emerged at the June Federal Open Market Committee (FOMC) meeting, the market has been betting on a possible benchmark interest rate hike in October. For this reason, attention is focused on the PCE indicator, which the Fed considers important.

Despite the possibility of further tightening by the Fed, Tom Hainlin, investment strategist at US Bank Asset Management Group, assessed that the environment remains favorable for large-cap U.S. stocks. Hainlin analyzed, "If you look at which companies are superior in terms of financial strength, transparency, and profitability—considering that the Middle East conflict has not yet ended, oil supply has not fully returned to normal, and the United States still possesses its own energy resources—for now, the advantage still lies with the United States."

Meanwhile, U.S. Treasury yields rose. As of this time, the yield on the 10-year U.S. Treasury note is 4.510%, up 5.7 basis points (1 basis point = 0.01 percentage points) from the previous trading day. The yield on the 2-year U.S. Treasury note is 4.230%, up 5.1 basis points from the previous session.

This content was produced with the assistance of AI translation services.