[New York Stock Exchange] Tech Stocks Surge to Record Highs… Uncertainty in Korea and France Resolved
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- The New York Stock Exchange reported that the Dow Jones Industrial Average closed above the 45,000 mark for the first time due to the strength of tech stocks.
- Optimism about the US economy has positively influenced investor sentiment by stimulating risk asset preference.
- The possibility of a Federal Reserve interest rate cut is projected at 77.5%, which could be favorable for the stock market.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
Dow Closes Above 45,000 for the First Time
'Magnificent 7' Including Nvidia Show Strength
Salesforce and Marvell Surge on 'Surprise Earnings'
Powell: 'US Economy Surprisingly Strong'
The three major indices of the New York Stock Exchange closed at record highs, buoyed by the strength of tech stocks. The lifting of martial law in Korea and the passing of a no-confidence vote against the current French government allowed the New York Stock Exchange to focus more on the performance and economic conditions of US companies.
On the 4th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 45,014.04, up 308.51 points (0.69%) from the previous session. This is the first time the Dow has closed above the 45,000 mark. The Standard & Poor's 500 index rose 36.61 points (0.61%) to 6,086.49, and the tech-heavy Nasdaq Composite Index jumped 254.21 points (1.30%) to 19,735.12.
All three major indices closed at record highs based on closing prices.
Salesforce, a US software company and a component of the Dow, led the index's rise. Salesforce's third-quarter earnings exceeded market expectations, and its future outlook was revised upward, surging 10.99% on the day. High-performance semiconductor design and manufacturing company Marvell Technology also recorded 'surprise earnings,' jumping 23.19%.
The 'Magnificent 7,' referring to the top seven US tech stocks, all closed strong. Nvidia rose 3.48%, and Amazon also increased by 2.21%. Tesla (1.85%), Alphabet (1.77%), and Microsoft (1.44%) all closed up by more than 1%.
Optimism about the US economy also boosted risk asset preference.
On this day, Jerome Powell, Chairman of the US Federal Reserve, assessed the current US economic situation as "surprisingly strong." The Beige Book, the Fed's economic report released on the same day, also diagnosed that US economic activity had increased slightly over the past month, and companies were becoming more optimistic about demand prospects.
Peter Cardillo, an economist at Spartan Capital Securities, said, "Chairman Powell was very positive about the economy and mentioned progress on inflation," adding, "This is generally good news for stocks."
The market is betting heavily on the Fed cutting the benchmark interest rate by 0.25 percentage points this month and holding it steady next month. According to the Chicago Mercantile Exchange (CME) FedWatch Tool, the probability of the Fed cutting the benchmark interest rate by 0.25 percentage points this month is 77.5%, and the probability of holding it steady is 22.5%. The probability of a 0.25 percentage point cut this month and holding it steady next month is 64.5%.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) rose 0.15 points (1.13%) to 13.45 from the previous session.
Meanwhile, Korean-related stocks, which fell on the New York Stock Exchange the previous day due to President Yoon Suk-yeol's declaration and lifting of martial law, showed mixed stock price movements on this day. Webtoon Entertainment jumped 5.44%, and POSCO Holdings rose 0.69%. On the other hand, KT fell 2.66%, and KB Financial and Coupang fell 0.56% and 0.21%, respectively.
