The New York stock market closed lower across all three major indexes for the first time in 14 days, as profit-taking sales emerged without any particular favorable news. Analysts noted that with a lack of major indicators or events, there was a 'breathing' phase due to fatigue from a short-term surge.
On the 20th (local time), the Dow Jones Industrial Average closed at 42,677.24, down 114.83 points (0.27%) from the previous trading day on the New York Stock Exchange (NYSE). The Standard & Poor's (S&P) 500 index fell 23.14 points (0.39%) to 5,940.46, while the Nasdaq composite index dropped 72.75 points (0.38%) to 19,142.71.
The decline in all three major indexes is the first since the 6th, and the S&P 500's six-day consecutive rise also halted on this day.
There was a significant selling pressure due to a lack of indicators or news that could provide clear direction to the overall market, leading to caution regarding the recent upward trend. Ongoing tariff negotiations between the United States and major countries also have yet to make progress.
Currently, the United States has not concluded tariff negotiations with major trading partners such as South Korea, Japan, and India, excluding the United Kingdom, and the 'swift resolution' promised by the Trump administration is also delayed.
The prevailing analysis in the market suggests that selling pressure emerged from concerns over the recent surge in stock prices. Ryan Dietrich, chief market strategist at Carson Group, noted, "The S&P 500 index has risen about 20% over the past 27 trading days," adding, "This is a correction due to market overheating rather than a technical rebound or bear market bounce."
Interest in tariff and exchange rate negotiations between the U.S. and Japan is also increasing. According to Kyodo News, the Japanese government is considering a plan to accept a certain level of tariff reduction instead of demanding the elimination of tariffs on key items such as automobiles. If progress is made in the negotiations, it could provide certain support to the market.
By sector, most sectors declined except for consumer staples, healthcare, and utilities. Among the 'Magnificent Seven' that drove the strength in tech stocks, all except Tesla saw declines. Tesla rebounded as CEO Elon Musk announced he would remain in his position for the next five years.
By issue, D-Wave Quantum saw its stock surge 26% after officially launching its next-generation quantum computer 'Advantage 2.' Armusports raised its annual revenue forecast along with first-quarter earnings that exceeded market expectations, resulting in a 19% increase in its stock price. In contrast, Home Depot ended lower, stating it has no plans for price hikes despite tariff increases.
Meanwhile, officials from the Federal Reserve emphasized the importance of price stability on this day. Alberto Musalem, president of the St. Louis Federal Reserve, stated, "We must prioritize price stability against persistent inflationary pressures," and Raphael Bostic, president of the Atlanta Federal Reserve, warned, "If preemptive purchases before tariff imposition do not yield results, it could soon be reflected in prices."
In the federal funds futures market, the possibility of a rate freeze in July is reflected at 71.2%, marking an increase from the previous day. The CBOE Volatility Index (VIX) fell 0.05 points (0.28%) to 18.09.