US stocks plunge after hot growth days

After a long series of hot growth days, US stocks had a sharp decline as investors took profits after a long series of hot growth sessions.

On December 20, 2023, the Dow Jones fell 475.92 points, or 1.27%, to 37,082 points. The Nasdaq Composite fell 1.5% to 14,777.94 points. The decline ended a nine-session winning streak for both indexes.

US stock market plunges after long streak of hot growth (Photo TL)

For the S&P 500, the index lost 1.47% to 4,698.35 points. This was the worst session since September 2023. However, some experts are still optimistic about this signal.

"The market has been overbought and it's normal for it to pull back like this. It's a technical pullback," said Keith Buchanan, senior portfolio manager at Globalt Investment.

FedEx was the biggest loser among the S&P 500 stocks, down 12%. The delivery company forecasts weak revenue next year amid the economic downturn and falling purchasing power. FedEx also reported quarterly results that were lower than expected in both revenue and profit.

In contrast to the overall market decline, technology companies still emerged, with Alphabet, Google's parent company, rising 1.2% and helping to slow the overall decline of the S&P 500 index.

Historically, fluctuations in the US stock market have often had some impact on the Vietnamese stock market, although the level of reaction has not been too great.

Statistics from 2012 - 2022, Dow Jones had a total of 27 times of falling over 3% in one session and VN-Index only had 6 times of falling over 3% in the following session. There were even 7 times VN-Index increased again. Most of the time after that, VN-Index fell under 2% or decreased insignificantly.

Source: https://www.congluan.vn/chung-khoan-my-lao-doc-sau-chuoi-ngay-tang-truong-nong-post277495.html