Rises on Expectations of U.S. Federal Government Shutdown Resolution… Palantir up 9% ↑ [New York Stock Market Briefing]

Major indices on the New York stock market closed higher on hopes that the temporary suspension of U.S. federal government operations (shutdown) will be lifted.

On the 10th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 47,368.63, up 381.53 points (0.81%) from the previous day, the Standard & Poor's (S&P) 500 Index rose 103.63 points (1.54%) to 6,832.43, and the Nasdaq Composite Index jumped 522.64 points (2.27%) to 23,527.17.

Expectations that the U.S. federal government shutdown will be resolved lifted the market. Eight centrist Democratic senators turned to support the Republicans' temporary budget bill. The U.S. Senate could hold a full session as early as today to finalize the temporary budget bill. If the bill clears the Senate, the House, where Republicans hold the majority, is likely to approve it.

If the shutdown is lifted, federal employees will return to work and delayed economic indicators will be released normally. Uncertainty over the Federal Reserve's (Fed) monetary policy direction would also be eased.

It could also alleviate concerns that the year-end shopping season would be lost. A recent aviation chaos occurred as air traffic controllers who did not receive pay due to the shutdown were absent. If the shutdown is lifted within this week, travel demand and consumption are expected not to suffer major disruption.

Among major sectors on the day, technology and communication services jumped more than 2%. Consumer discretionary and materials also rose more than 1%.

Notably, the Philadelphia Semiconductor Index, centered on AI and semiconductor-related stocks, surged 3%.

Among individual stocks, market leader Nvidia soared 5.79%. Its market capitalization again came within sight of 5 trillion dollars. Broadcom, TSMC, and ASML also rose around 3%. Alphabet A shares rose about 4%. Broadcom, Amazon, Microsoft, and Meta also rose around 2%.

Palantir, which had been a major sell target amid AI bubble concerns, showed resilience by surging 8.81%.

According to the CME FedWatch Tool, the federal funds rate futures market reflected a 35.9% probability that the policy rate will be held steady in December.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) fell 1.48 points (7.76%) from the previous session to 17.60.

Han Gyeong-woo, Hankyung.com reporter case@hankyung.com