The New York stock market fell across the board, unable to overcome the combined burden of geopolitical uncertainty in the Middle East, rising international oil prices, and elevated long-term Treasury yields. In particular, selling concentrated in technology and semiconductor stocks, which had recently led the market rally, resulting in a relatively steep decline in the Nasdaq index.

◆ Three Major Indices Post Third Consecutive Loss After Record Highs

In the New York session that closed on the morning of the 19th Korean time, the Dow Jones Industrial Average finished 116.38 points (0.22%) lower at 53,343.40. The Standard & Poor's (S&P) 500 index fell 53.30 points (0.69%) to 7,691.76, and the tech-heavy Nasdaq Composite Index closed down 355.20 points (1.33%) at 26,289.71. The three major indices extended their losing streak to a third consecutive session after recently climbing to record highs.

◆ Rising U.S.-Iran Tensions Add Pressure to Oil Prices

One of the biggest burdens on the market was heightened tensions surrounding the United States and Iran. As uncertainty grew over the extension of a ceasefire, concerns about disruptions to crude oil supply resurfaced, putting upward pressure on international oil prices. Brent crude rose above $91 per barrel, while West Texas Intermediate (WTI) finished trading in the upper $84 range.

The rise in oil prices created another burden for the stock market. Caution spread that if energy prices remain elevated, inflationary pressure in the United States may not easily subside, which in turn renewed uncertainty over the Federal Reserve's monetary policy. In the market, attention increasingly turned to the Fed's schedule and economic indicators to gauge the future direction of the benchmark interest rate.

◆ 30-Year Treasury Yield Hits Highest Since 2007... Blows to Tech Investor Sentiment

Bond market movements also weighed on equities. U.S. long-term Treasury yields hovered at their highest levels in years, with the 30-year Treasury yield rising to 5.3371% intraday, the highest level since 2007. High long-term yields raise the discount rate applied to future earnings, and thus tend to have a relatively sensitive impact on investor sentiment toward growth and technology stocks.

Notably, declines in artificial intelligence (AI) and semiconductor-related stocks stood out on the day. As caution over valuation burdens emerged in the technology stocks that had led Wall Street's rally until recently, selling spread across semiconductor shares broadly. The Philadelphia Semiconductor Index also fell sharply, deepening the decline of the Nasdaq index, which has a high weighting of technology stocks.