Wall Street Ends Lower as Semiconductor Stocks See Profit-Taking

On the 16th (local time), the S&P 500 index closed down 0.55% at 7512.44, and the Nasdaq Composite Index finished down 1.15% at 26382.81 on the New York stock market. Meanwhile, the Dow Jones Industrial Average gained 0.67% to close at 52016.57, surpassing the 52,000 mark for the first time in history.

The decline in semiconductor-related companies, which had recently surged, is analyzed as a factor that led the overall market downturn. The drop in the Nasdaq index appears to be a result of concentrated profit-taking in semiconductor stocks that had seen rapid gains over the past three trading days. AMD plunged 7.30%, Micron Technology fell 6.18%, and Nvidia slipped 2.4%. Broadcom also declined by 4.4%.

In contrast to the major tech stocks, SpaceX, which listed last week, continued its rally for the third consecutive trading day, rising 4.83%. Its market capitalization reached the $2.6 trillion range, surpassing Amazon to become the 5th largest globally.

Investors are closely watching the Federal Reserve's monetary policy meeting results. The Fed is expected to keep the benchmark interest rate unchanged at its current range of 3.50-3.75%. The market is anticipated to gauge the future path of interest rates through Fed Chair Powell's remarks on inflation, employment, and the economic outlook.