New York Stock Market Falls on Trump Impeachment Proposal and Concerns over Technology Companies Regulation

Input 2021.01.12 06:55 | Revision 2021.01.12 08:33

In the US New York Stock Exchange, major indexes fell all at once. This is because of political unrest, such as the Democratic House of Representatives’ resolution to impeach President Donald Trump, and concerns about regulations on technology companies.

On the 11th (local time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average closed at 31,008.69, down 89.28 points (0.29%) from the battlefield, and the Standard & Poor’s (S&P) 500 index 25.07 points (0.66%). It fell to 3,799.61. The technology stock-oriented NASDAQ index closed at 13,036.43, down 165.54 points (1.25%).

As the unrest in the US political situation continues, investment sentiment seems to subside. The Democratic Party officially initiated a resolution to prosecute Trump against impeachment. In connection with the Trump support’s intrusion into the parliament on the 6th, it applied charges of inciting civil war. The US House of Representatives is expected to vote on the impeachment bill this week.

There are also concerns that the biden administration’s stimulus measures could suffer as the conflict between the Democrats and the Republicans intensifies if President Trump’s impeachment is impeached.

In addition, with the outlook that the regulation of technology companies could be strengthened in relation to the congressional riots of President Trump’s support, it negatively affected the company’s stock price.

President Trump is pointed out on Twitter that he encouraged their intrusion. Accordingly, there are observations that the next administration could strengthen regulations on social media (SNS) companies.

Amid these concerns, Twitter shares fell more than 6.4% on the day, and Facebook shares fell 4%. All technology stocks fell 0.94%.

US economic indicators were sluggish. The conference board, a private research institute, revealed that in December last year, the US employment trend index (ETI) reached 99.01. This is lower than the upward revision of 99.05 in November last year.

Earlier, the major indexes of the New York Stock Market surged to all-time highs last week. Investor sentiment was fueled by the expectation that Joe Biden will implement a major fiscal stimulus for the next administration. As a result, some analyzes that there may be coordination movements.

“The stock market is obviously getting more cautious now after the strength of the past few months,” said Matt Murray Miller, senior market strategist at Brussels. “The correction will begin in the first quarter of this year.”

On the Chicago Options Exchange (CBOE), the volatility index (VIX) was 24.08, up 11.69% from the previous trading day.