Tech rally lifts all three major indexes…Intel up 8.6% [New York market briefing]

The three major New York stock indexes closed higher as risk-on investor sentiment recovered, helped by a rebound in Bitcoin.

On the 2nd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 47,474.46, up 185.13 points (0.39%) from the previous day.

The Standard & Poor's (S&P) 500 index rose 16.74 points (0.25%) to 6,829.37, and the Nasdaq index climbed 137.75 points (0.59%) to 23,413.67.

By sector, all sectors except industrials, communication services, and technology fell. Energy slid 1.28%.

There were no obvious market-moving catalysts. However, as bargain buying flowed into the crypto market and Bitcoin rebounded, risk-on sentiment also recovered in New York stocks. Bitcoin is currently up nearly 5%.

The artificial intelligence (AI) and semiconductor themes led the market. Amazon unveiled its latest in-house AI chip, 'Trainium 3.' The Trainium 3, a custom ASIC designed by Amazon, is scheduled to be deployed in Amazon's data centers from early next year. After Amazon unveiled Trainium 3, the rally in AI-related companies eased, which is interpreted as due to intensified competition in AI chips.

Intel stood out, surging 8.65% on the day. Buying was interpreted as driven by forecasts that it could produce Apple's entry-level 'M-series' chips from 2027. The Philadelphia Semiconductor Index rose 1.84%.

Doug Vis, global equity strategist at Wells Fargo Investment, said, "The market is looking past uncertainty around Fed policy and this month's Federal Open Market Committee (FOMC) meeting and is forecasting an acceleration of growth in the back half of next year," adding, "seasonal factors also work in favor of stocks in December."

On the day, U.S. President Donald Trump publicly introduced Kevin Hassett, chairman of the White House National Economic Council (NEC), as a potential candidate for the Federal Reserve chair, but the market showed little reaction.

According to the CME FedWatch tool, the federal funds futures market reflected an 89.1% probability of a 25bp (1bp=0.01% point) rate cut in December.

Boeing's stock jumped 10% after the company's chief financial officer (CFO) said it could generate cash starting next year. Warner Bros. Discovery rose more than 2% after receiving takeover offers from multiple bidders, including Netflix.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) fell 0.65 points (3.77%) to 16.59.

Jinyoung Ki, Hankyung.com reporter young71@hankyung.com