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As the US tech stocks plummet, Seohak ants are suffering from cold heart. This is due to growing concerns over the fact that the stock price has changed significantly from the rising market when it wakes up. When Tesla, the foreign stock held the most by domestic investors, fell 8.55% overnight, the Tesla holdings fell below $10 billion in one month. Experts believe that it is inevitable to adjust technology stocks according to the movement of interest rate hikes. However, some analyzes show that it is a short-term process from a liquid market to an earnings market.
Unity -23%, No. 1 net purchase in February
On the 22nd (local time), the US New York Stock Market ended with technology stocks falling one after another in the aftermath of a surge in government bond interest rates. In particular, Tesla’s stock price plummeted nearly 9%, breaking the market cap of 700 billion dollars. The 10-year U.S. Treasury bond rate rose to 1.39% at one time during the day, plus the influence of US Treasury Secretary Janet Yellen’s criticism of Bitcoin as a speculative asset. As Tesla head Elon Musk decided to introduce bitcoin as a payment method, the stock price tends to move with bitcoin price.
As Tesla’s stock price plummeted, the balance of domestic investors’ holdings also decreased to $9.81756 million. On the 20th of last month, the Tesla holdings surpassed 10 billion dollars for the first time.
The same is true that the Seohak ants, who have set out to find the second Tesla, are calming their hearts. Unity Software (US$ 192.25 million) is the number one net buying item this month. It beat Apple ($153.8 million) and Tesla ($125.07 million). Unity Software is a software company for producing three-dimensional (3D) content. After listing in September last year, the stock price surged 124.54% until the end of the year, attracting the attention of Seohak ants. This is the reason why many Seohak ants flocked to Tesla as he slowed down. However, this month, when domestic investors intensively bought, the stock price fell 22.93%. Among investors, there is even a complaining of “a sharp drop when you wake up”.
“Not a level of concern”
The stocks most recently visited by domestic investors, such as Apple (-4.52%), Tesla (-9.96%), Palantier Technologies (-20.41%), and Lee Hang (-19.79%), are also on the decline this month. The circumstances vary from company to company, but interest rates have caught up.
The 10-year Treasury bond rate has risen to the level in February of last year, just before the collapse of the corona 19 crisis was produced. Usually, an interest rate hike is bad news for technology stocks. The gap in interest rates between 2-year government bonds and 10-year government bonds also widened to the maximum in about four years. Rising long-term interest rates and widening short- and long-term interest rates are considered representative signs of economic recovery. This is the reason why an additional rate hike is possible.
Ik-jae Cho, an expert on High Investment & Securities, said, “It is natural that technology stocks whose stock prices soar due to liquidity are affected by an interest rate hike.” did. He added, “In the market, expectations for economic normalization are rising as the corona spread slows down due to vaccines, etc.,” he said. “Concerns that liquidity may shrink if the economy recovers to before the corona crisis is acting as a negative factor for technology stocks” Added.
However, the general analysis of experts is that it is not at the level of great concern. Moon Nam-jung, a researcher at Daishin Securities, said, “We usually see the support line for the irrational overheating phase at around $30,000 in bitcoin and $700 in Tesla, but we have not reached that level yet. This is big.”
Reporter Park Jae-won [email protected]
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