news-view-comp__cont__image-box__contents">
(UPI=Yonhap News file photo)
New York stock market digests AI panic, pays attention to good performance of major companies… Departure from Honjo
(New York = Yonhap News) Kim Hyun, Yonhap Infomax Correspondent = The New York stock market started off mixed, keeping an eye on the performance announcements of major companies. The artificial intelligence (AI) panic caused by the earnings shock of Dutch semiconductor equipment company ASML the previous day and the resulting pressure to sell technology stocks appear to have been relieved to some extent.
As of 10:40 a.m. on the New York Stock Exchange (NYSE) on the 16th (local time), the Dow Jones Industrial Average, a blue-chip stock group, is recording 42,931.80, up 191.38 points (0.45%) from the previous day.
The large-cap benchmark Standard & Poor’s (S&P) 500 index showed 5,819.97, 4.71 points (0.08%) higher than the previous day, and the NASDAQ composite index centered on technology stocks showed 18,289.87, 25.72 points (0.14%) lower than the previous day.
The Russell 2000 index, which consists of small and mid-cap stocks, is rising in the 1% range.
The three major indices all closed lower the day before. When ASML’s third quarter net reservations were found to be less than half of market expectations, questions were raised as to whether demand for AI semiconductors would continue to grow at a rapid pace in the future, and risk aversion sentiment spread, dragging down the entire market. The good performance of major Wall Street banks has faded.
On this day, major companies continued to announce their performance.
Large bank Morgan Stanley recorded net profit of $3.2 billion, up 32% from the same period last year, thanks to a 56% surge in investment banking sales, easily exceeding Wall Street experts’ expectations ($2.6 billion). Earnings per share (EPS) of $1.88 also exceeded market expectations ($1.59). The stock price began trading with a 7% rise.
Global medical company Abbott Laboratories’ stock price rose more than 2% after posting strong results thanks to the strength of the medical device and pharmaceutical sectors and raising its annual guidance.
United Airlines’ stock price soared by more than 8% as it announced its plan to repurchase shares worth $1.5 billion, along with good performance, with adjusted earnings per share (EPS) of $3.33, exceeding market expectations ($2.75-$3.25).
Biotechnology company Novocure’s stock price jumped more than 5% after news broke that its wearable lung cancer treatment device ‘Optune Lua’ had received marketing approval from the U.S. Food and Drug Administration (FDA).
ASML stock price plunged 16.26% the previous day and fell by about 5% that day.
However, other semiconductor stocks are generally showing signs of recovery.
AI leader Nvidia fell 4.69% the previous day, but began trading today with an increase of around 2%.
Broadcom rose in the 1% range and Micron Technology rose in the 4% range, AMD’s prices rose strongly, and Super Microcomputer and Qualcomm’s prices rose weakly.
Apple, whose stock price rose 1.10% the previous day despite the Nasdaq plunge and set an all-time record (intraday $237.49, closing price $233.10), fell back by about 1%.
Among the ‘Magnificent 7’ large technology stock groups, Nvidia, Alphabet (Google’s parent company), and Tesla opened on the rise, while Microsoft, Apple, Amazon, and Meta (Facebook’s parent company) opened on the downside.
Liquid Capital Management analyst Brynn Talkington predicted that the market could be choppy in the coming weeks as companies continue to announce earnings ahead of the presidential election.
Investors view the geopolitical conflict in the Middle East as the biggest ‘tail risk’. It refers to a factor that is unlikely, but can have a serious impact on the market once it occurs.
According to a Bank of America survey of global fund managers this month, one-third (33%) of survey respondents cited Middle East conflict as the biggest tail risk. This was followed by rising global inflation (26%) and the US recession (19%). Just last month, concerns about a U.S. economic recession were the biggest at 40%.
According to the FedWatch tool of the Chicago Derivatives Exchange Group (CME Group), the probability that the Federal Reserve will further cut the benchmark interest rate by 25 basis points in November is 92.8%, and the probability of freezing it is 7.2%.
On this day, European stock markets are also showing mixed results.
Germany’s DAX index remained flat, Britain’s FTSE index rose 1.12%, but the pan-European index STOXX600 fell 0.04%.
International oil prices continued their downward trend, narrowing the decline.
The price of West Texas Intermediate (WTI) crude oil for November delivery, which is a nearby contract, is trading at $70.26 per barrel, down 0.45% from the previous session, and the global benchmark Brent crude oil price for December delivery is trading at $73.97 per barrel, down 0.38% from the previous session.
