[New York Stock Market Briefing] Decline on the First Day of the New Year... Tesla Drops 6% on 'Shock' Vehicle Sales

On the 5th (local time), Gary Gensler, SEC Chairman, is broadcasting before ringing the 'Opening Bell' at the New York Stock Exchange./New York=Kim Beom-jun, reporter

On the first trading day of the new year, major indices of the New York Stock Exchange closed slightly lower. Investor sentiment deteriorated as Tesla's vehicle sales last year fell short of expectations. The continued strength of the dollar and the fluctuation of treasury yields also negatively impacted the stock market.

On the 2nd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 42,392.27, down 151.95 points (0.36%) from the previous day, the Standard & Poor's (S&P) 500 index fell 13.08 points (0.22%) to 5,868.55, and the Nasdaq Composite closed at 19,280.79, down 30.00 points (0.16%).

Investor sentiment worsened as Tesla's vehicle sales, which have been a hot topic in the stock market recently, fell significantly short of expectations. Tesla announced that it sold 1,789,226 vehicles last year. This was below the market expectation of 1.8 million and the 2023 sales target of 1.81 million. Tesla's fourth-quarter sales also fell short of the market forecast (504,770) at 495,570. As a result, Tesla's stock price plummeted by 6.08%.

Apple also fell nearly 3%, weighing down the stock index. Although there was no clear negative factor, it is interpreted as a continued move for profit-taking following a strong fourth quarter last year.

In addition to Apple and Tesla, Microsoft also recorded a slight decline among the 'Magnificent 7' giant tech companies.

NVIDIA managed to recover its gains at the end of the session, reducing the index's decline. TSMC and ASML rose around 2%, while Arm and Micron Technology climbed nearly 4%. As a result, the Philadelphia Semiconductor Index rose by 0.8%, ending a three-day losing streak.

By sector, energy rose more than 1%, and communication services, utilities, and healthcare also showed an upward trend.

In the U.S., the number of new unemployment insurance claims for the week decreased compared to the previous week, indicating stability in the job market. The number of new unemployment insurance claims for the week ending December 28 last year was 211,000, down 9,000 from the previous week.

The U.S. manufacturing sector continued its sluggish trend. Standard & Poor's (S&P) Global announced that the final December manufacturing Purchasing Managers' Index (PMI) was 49.4. Although it exceeded the market expectation of 48.3, it was slightly down from 49.7 in November last year and remained below the benchmark of 50.

The Dollar Index (DXY), which calculates the value of the dollar against major currencies, surpassed the 109 mark for the first time since November 2022. As a result, the yield on the 10-year U.S. Treasury soared to 4.6%.

According to the Chicago Mercantile Exchange (CME) FedWatch Tool, the probability of the federal funds rate remaining unchanged in January was 88.8% at the close.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) rose 0.58 points (3.34%) to 17.93 compared to the previous session.

Han Kyung-woo, Hankyung.com reporter case@hankyung.com