2024-04-20 13:47:36
There are signs that the U.S. stock market has peaked, including a sell-off of technology stocks.
Recently, the Wall Street Journal (WSJ), a leading U.S. economic magazine, reported that pension funds, which are representative institutional investors in the U.S., are withdrawing funds from stocks and investing in bonds. When a pension fund sells stocks and buys bonds, it is a typical sign of a peak in stock prices.
As if to prove this fact, a sell-off of technology stocks occurred in the U.S. stock market on the 19th (local time).
On this day, tensions in the Middle East did not have a significant impact on the market, with international oil prices only rising slightly. However, interest rate uncertainty led to a sell-off in large technology stocks, causing the Nasdaq to plummet by more than 2%.
As there are concerns that an interest rate hike will not occur within the year, and the possibility of further delay in interest rate cuts increases, there has been a sell-off in technology stocks, which are relatively sensitive to interest rates and have risen significantly so far.
◇ NVIDIA plunges 10% : First of all, Nvidia, which has led the generative artificial intelligence (AI) rally, fell 10%.
On this day, Nvidia recorded $762.00 on the New York Stock Exchange, down 10% from the previous trading day. As a result, the market capitalization also decreased to $1.905 trillion, collapsing $2 trillion.
There was no special negative news related to NVIDIA on this day. Nvidia’s stock price, which had risen the most so far, appears to have plummeted due to the sell-off of technology stocks on Wall Street.
As NVIDIA plummeted 10%, AMD, known as the next NVIDIA, also plummeted 5.44%.
In addition, Intel, the largest semiconductor company in the United States, fell 2.40%, Micron Technology, the largest DRAM company in the United States, fell 4.61%, and Taiwan’s TSMC fell 3.46%.
◇ Philadelphia Semiconductor Index plunged 4.12% : Accordingly, the Philadelphia Semiconductor Index, a semiconductor group, also plummeted by 4.12%.
◇ Super Micro plunged 23% : As Nvidia plummeted 10%, Super Micro Computer (hereinafter referred to as Super Micro), another leading AI beneficiary, also plummeted 23%.
On this day, Super Micro recorded $713.65 on the New York Stock Exchange, down 23.14% from the previous trading day.
Super Micro is a company specializing in AI servers, and its stock price has soared by about 250% this year, overwhelming the growth rate of Nvidia (80%), making it the best-selling AI company recently.
Such an AI company plummeted by more than 23% when Nvidia fell 10%. This can be interpreted as an ‘illustration’ that clearly shows the sell-off phenomenon of technology stocks on this day.
◇ Microsoft also collapsed by $3 trillion : On this day, Microsoft (MS), the No. 1 company in the U.S. market cap, recorded $399.12, down 1.27% from the previous trading day. As a result, the market capitalization also decreased to $2.966 trillion. The market capitalization of $3 trillion collapsed.
As of the closing price on January 25, MS exceeded $3 trillion in market capitalization, becoming the second American company to join the ‘$3 trillion market cap club’ after Apple. In addition, it surpassed Apple, which was struggling due to declining iPhone sales, and became the No. 1 company in the U.S. by market capitalization.
Since then, MS has steadily maintained its market capitalization of $3 trillion, but as it fell 1.27% on this day, its market capitalization of $3 trillion collapsed. This can also be said to be an ‘illustration’ symbolizing the sell-off of technology stocks.
The selloff in technology stocks appears to be another sign that the U.S. stock market has peaked.
(Seoul = News 1)
2024-04-20 13:47:36