[New York stock market close | [October 7] Decreased due to the burden of government bond interest rates... Dow 0.66%↓

Caterpillar fell 5.75%... Micron and some large technology stocks rise. Federal Reserve minutes suggest the possibility of additional hikes within the year... Decision based on future indicators

The New York stock market fell amid the burden of government bond interest rates and weakness in industrial goods. The Dow's decline was noticeable as major industrial stocks such as Caterpillar fell sharply. Some large technology stocks, such as Amazon and Apple, rose, limiting the index's decline.

On the 7th (local time), the Dow Jones Industrial Average ended trading at 51,179.87, down 341.41 points (0.66%) from the previous day. The Standard & Poor's (S&P) 500 index closed at 7,801.77, down 17.16 points (0.22%), and the Nasdaq Composite Index closed at 27,538.69, down 61.20 points (0.22%). S&P 500 and Nasdaq retreated from their highest closing prices recorded the previous day.

In early trading, the rise in long-term U.S. government bond yields weighed on investor sentiment. Amid concerns about rising prices and debt, the 10-year government bond interest rate rose to 5.36% during the day. Afterwards, as solid demand was confirmed in the bidding for 10-year Treasury bonds worth $39 billion, the rate fell to around 5.28% in the second half of the day. Major stock indices also reduced their decline from intraday lows.

In terms of monetary policy, there is a possibility of further interest rate hikes within the year. In the minutes of the Federal Open Market Committee (FOMC) held on September 15th and 16th released today, most attendees judged that an additional increase by the end of the year was highly likely to be appropriate. It was also emphasized that decisions at future meetings depend on newly announced economic indicators, economic outlook, and changes in risk factors. This was a judgment made at the September meeting and did not confirm the October increase.

By stock, the decline in industrial goods was notable. Caterpillar fell 5.75%, Deere fell 3.80%, and GE Aerospace fell 1.86%. GE Vernova and Eaton also fell 3.12% and 3.09%, respectively, with stocks related to machinery, aviation, and power equipment showing weakness.

Semiconductor stocks also performed poorly overall. The Philadelphia Semiconductor Index closed at 13,066.15, down 151.67 points (1.15%). Nvidia fell 0.74% and AMD fell 0.55%, while Texas Instruments and Qualcomm fell 2.78% and 2.16%, respectively.

On the other hand, Micron showed strength within the semiconductor industry, rising 4.06%. Intel and Broadcom also rose 0.55% and 0.19%, respectively.

Among large technology stocks, Amazon rose 1.42%, Apple rose 0.91%, and Alphabet rose 0.81%. Microsoft rose 0.09%. Meta fell 2.38% and Tesla fell 0.75%, showing mixed trends by stock.

Pharmaceutical stocks were relatively strong. Eli Lilly rose 2.70%, Amgen rose 2.60%, AbbVie rose 1.75%, and Johnson & Johnson rose 1.44%. With all major indices falling, the market was experiencing a combination of the weakness of industrial goods and the rise of pharmaceutical stocks and some technology stocks.