SpaceX (SPCX) Plunges 4.7% on First Day in Nasdaq 100...Dow Jones 'Gives Back' Gains

▲ SpaceX (SPCX), Stock Price Plunge/AI Generated Image

The Dow Jones Industrial Average gave back all of its 233-point intraday gains just one day after breaking the 53,000 mark for the first time in history. As the sell-off that began with Asian semiconductor stocks spread to U.S. technology stocks, the Nasdaq fell 1.1%, and the semiconductor sector plummeted by over 5%.

According to MarketWatch on July 7 (local time), the Dow index, after closing above 53,000 for the first time ever the previous day, rose to 53,289 during trading today. However, it gave back all of its 233-point gain, falling to 53,025, a decrease of 31 points from the previous day. While the decline later narrowed to less than 17 points, the S&P 500 index fell 0.4%, and the Nasdaq Composite index dropped 1.1%.

Weakness in technology stocks was first detected in the Asian market. Samsung Electronics' stock price plummeted 7% despite expectations of a 19-fold increase in its recent quarterly operating profit, and SK Hynix also fell 6% after initiating its U.S. listing process. Patrick Munnelly, a market strategist at Tickmill Group, stated, "While not outright panic, market leadership is faltering. If high-risk AI-related stocks do not react to positive news, major indices lose their most important upward momentum."

In the U.S. market, the semiconductor sector also dropped by over 5%, dragging down the S&P 500 and Nasdaq. Although 18 of the 30 constituent stocks of the Dow index rose, they could not escape the selling pressure on technology stocks, and the index also gave back its intraday gains.

SpaceX (SPCX) plunged 4.7% on its first day of inclusion in the Nasdaq 100 index. It approached its lowest closing price since its market debut on June 12, with the previous lowest close being $153 recorded on June 25. While the stock price was above its IPO price of $135 and its first trading price of $150, the Nasdaq 100 index also fell 1.7% on the same day.

Ahead of SpaceX's inclusion in the Nasdaq 100, expectations for buying by index-tracking funds were raised, but the stock price showed weakness on the day of inclusion. The Dow index, which recorded its first-ever close above 53,000 the previous day, also failed to continue its upward trend, and the sell-off in technology and semiconductor stocks spread across major New York stock market indices.

[Article Key Summary]

- The Dow index gave back all of its 233-point intraday gains, while the S&P 500 fell 0.4% and the Nasdaq dropped 1.1%.

- The semiconductor sector plunged by over 5%, with weakness in Samsung Electronics and SK Hynix preceding the sell-off in U.S. technology stocks.

- SpaceX fell 4.7% on its first day of inclusion in the Nasdaq 100, nearing its lowest closing price since its market debut.

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