[New York Stock Exchange] Nasdaq Closes Down 2.22% as Tech Stocks Plunge

Crude Oil Closes Lower
Micron and SanDisk Drop 13%

On the 23rd (local time), all three major indices on the New York Stock Exchange closed lower. As selling pressure intensified on technology stocks such as Micron, the Nasdaq tumbled more than 2%.

On the New York Stock Exchange, the blue-chip-focused Dow Jones Index fell by 45.87 points (0.09%) from the previous session to close at 51,666.84. The S&P 500 Index, which is centered on large-cap stocks, dropped by 107.33 points (1.44%) to finish at 7,365.46, while the technology-heavy Nasdaq Index fell by 579.56 points (2.22%) to close at 25,587.03.

View of the New York Stock Exchange. New York, USA – Photo by Yoonju Hwang

Investor sentiment weakened on this day as major technology stocks, including Micron, plummeted. Micron declined by 13.18%, SanDisk by 13.64%, Seagate by 5.07%, Intel by 6.14%, AMD by 5.76%, Qualcomm by 8.01%, and Alphabet by 1.02%.

Bloomberg assessed that concerns over large-scale investments by big tech companies are causing the technology stock rally to stall. Chris Low of FHN Financial noted, "This session, reflecting risk-averse sentiment, shows that optimism about AI may be excessive."

The downturn began with the decline in the Korean stock market. Foreign investors sold over 2.5 billion dollars in the KOSPI market, and individual investors trading on margin faced forced liquidation. Additionally, Bloomberg reported that selling pressure related to leveraged exchange-traded funds (ETFs) tracking SK hynix and Samsung Electronics further worsened the situation.

Volatility was concentrated among memory suppliers. CNBC reported that as AI-related stocks like SK hynix plunged over 12% in Korea’s KOSPI market, this influenced the wave of selling in global technology stocks.

Matt Maley of Miller Tabak said, "The U.S. market would need to show much greater weakness than what we're currently seeing to be interpreted as a serious warning signal," adding, "However, considering high debt ratios worldwide, including Korea, investors should not become complacent."

The market's attention is now focused on Micron's earnings announcement, which is set to be released tomorrow. This report is expected to serve as the most definitive test of whether demand for AI infrastructure can maintain its upward momentum this year.

Veteran strategist Louis Navellier emphasized, "This earnings report will be the grand finale of a 'remarkable' earnings season, and all share price declines should be viewed as 'buying opportunities.'"

Brock Weimer of Edward Jones commented, "The overall market remains strong, supported by solid fundamentals," but added, "After the rally in technology and growth-oriented sectors, diversification is key for risk management."

Meanwhile, at the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for July delivery fell by 0.88% from the previous session to $73.21 per barrel. At the ICE Futures Exchange, Brent crude for August delivery dropped by 1.05% to $77.08 per barrel.

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