Summary
- Investor appetite for technology stocks revived after the U.S.-China summit, lifting the Dow, the S&P 500, and the Nasdaq Composite together.
- Nvidia rose 4.36%% on expectations for sales of its H200 chips in China, while the Philadelphia Semiconductor Index and AI chip company Cerebras Systems also posted strong gains.
- Cisco jumped 13.03%% after reporting earnings that topped expectations and announcing plans to cut 5%% of its workforce, while Boeing fell 4.73%% on profit-taking.
Forecast Trend Report by Period
Major New York stock indexes closed higher as a summit between the U.S. and Chinese leaders revived investor appetite for technology shares. The Dow Jones Industrial Average climbed back above 50,000, while the S&P 500 and Nasdaq Composite set fresh record highs again.
On May 14, the Dow rose 370.26 points, or 0.75%, to close at 50,063.46 on the New York Stock Exchange. The S&P 500 gained 56.99 points, or 0.77%, to 7,501.24, while the tech-heavy Nasdaq Composite advanced 232.88 points, or 0.88%, to 26,335.22.
The S&P 500 and Nasdaq both set new intraday and closing records. The Dow also reclaimed the 50,000 level.
Investor sentiment improved after President Donald Trump and Chinese President Xi Jinping met in Beijing on May 14 and reaffirmed their commitment to economic cooperation. Hopes for easing tensions between Washington and Beijing also strengthened after Trump included a large group of top technology and financial company chief executives in his delegation to China.
Technology stocks led the advance. The Philadelphia Semiconductor Index rose sharply, lifting sentiment toward chipmakers. Nvidia gained 4.36% as expectations mounted for sales of its H200 chips in China after news that Chief Executive Officer Jensen Huang joined the Beijing trip.
Among Dow components, Cisco Systems surged 13.03% after reporting earnings that beat market expectations and announcing plans to cut 5% of its workforce. Boeing, by contrast, fell 4.73% as investors took profits despite expectations for large aircraft purchases from China.
The rally in artificial intelligence stocks also continued. AI chipmaker Cerebras Systems closed its first day of trading in New York up 68% from its initial public offering price.
CNBC reported that Elon Musk's space company, SpaceX, could release its IPO prospectus as early as next week.
Oil prices surrendered most of their intraday gains and ended little changed. Brent crude for July delivery settled at $105.72 a barrel on ICE Futures Europe in London, up 0.09% from the previous session. West Texas Intermediate crude for June delivery rose 0.15% to $101.17 a barrel on the New York Mercantile Exchange.
News that some transit had resumed through the Strait of Hormuz limited gains in crude. Still, supply concerns remained a burden on the market as attacks on and seizures of vessels in the Middle East continued.
Kim Yeon-ji, Hankyung.com reporter kongzi@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
