Chip Stocks Impacts Nasdaq’s Closing Price in US Stock Market

United States – Nasdaq Composite index falls to its lowest level in the US stock market, closing at 1.04%. The closing price appears to be the lowest since July 2020.

After the closing of the US stock market on Monday, October 10, the Nasdaq Composite index fell to its lowest level and lowest price in two years as technology shares endured to be the harshest hit in the bear market due to increasing interest rates.

The Nasdaq Composite ended at 1.04%, which decreased to 10,542.10. It’s the lowest price, impacted by a fall in semiconductor stocks like AMD and Nvidia. Aside from Nasdaq, S&P 500 also dropped its price by 0.75% up to 3,612.39. The semi-stocks, along with drops in big tech names, such as Microsoft, affected the performance of the price as well. On the other hand, Dow Jones Industrial Average lost 93.91 points, ending at 29,202.88.

Jamie Dimon, the CEO of JPMorgan, informed the United States or the US about the recession next year, and that’s when the stock value dropped. As per Dimon, it’s not only a small commercial contraction since some economists also projected the performance.

A policy change pressed on semiconductor stocks after the administration of Biden declared new export controls that restrict companies in the US from selling advanced processing semiconductors, which are China’s manufacturing equipment. Tech shares also experienced a hard hit in the sell-off after increasing rates. It exposed the high valuations and raised the capital’s cost.

The 10-year Treasury note’s futures also lowered while the bond market didn’t operate due to the holiday. The futures indicated yields as these continue to go higher. The yields moved the wrong way around to prices, which lowered prices by around 0.6%. The volume also was lower, which is a typical movement every holiday.

According to Art Hogan, B. Riley Financial’s chief market strategist, there are participants that key off what the yields in Treasury were doing. If the yields are not open, it isn’t easy to have an impacting volume in the US stock market.

The stock investor also became cautious about the inflation reports and key earnings of the US stock market since there will be new feedback on the performance of the United States or the US economy. The four biggest banks of the word, including Wells Fargo, Citi, Morgan Stanley, and JPMorgan, will report on Friday, October 14, while Domino’s, Delta, and PepsiCo will report next week. The September Producer Price Index will be available on Wednesday, while the Consumer Price report will be on Thursday.

Nasdaq’s losses for 2022 are over 3.2%, while S&P 500 is over 24%.

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