[New York Stock Market] Technology Stocks Surge Amid Uncertainty… Korea and China Uncertainty Dissipates

Dow Jones Industrial Average Closes Above 45,000 for the First Time

NVIDIA and 'Magnificent Seven' Surge

Salesforce and Marvel 'Surprise Performance' with Sharp Rise

Powell: "US Economy Looks Good Enough to Surprise"

The three major indices of the New York Stock Exchange surged as technology stocks gained strength, all recording new highs. The Korean financial crisis that had previously gripped investors was resolved, and the vote of no confidence against the French government was also settled, allowing the New York Stock Exchange to focus more on the performance and economic conditions of US companies.

On the 4th (local time), the Dow Jones Industrial Average at the New York Stock Exchange (NYSE) closed at 45,014.04, up 308.51 points (0.69%) from the previous day. This is the first time the Dow has closed above 45,000. The S&P 500 index rose 36.61 points (0.61%) to 6,086.49, and the technology-focused Nasdaq Composite index jumped 254.21 points (1.30%) to 19,735.12.

On this day, all three major indices closed at their highest levels ever.

The US software company Salesforce led the index's rise. Salesforce's third-quarter performance exceeded market expectations, and its outlook was also adjusted upwards, surging 10.99% on this day. High-performance semiconductor design and manufacturing company Marvel Technology also recorded a 'surprise performance,' jumping 23.19%.

The 'Magnificent Seven,' which represents the seven major technology stocks in the US, also closed with gains. NVIDIA rose 3.48%, and Amazon climbed 2.21%. Tesla (1.85%), Alphabet (1.77%), and Microsoft (1.44%) also all closed with gains of over 1%.

The strengthened optimism about the US economy also boosted investor sentiment.

On this day, Federal Reserve Chairman Jerome Powell commented on the current US economic situation, saying it was "good enough to surprise." The economic trend report (Beige Book) released by the Fed on this day also indicated that US economic activity had increased sharply over the past month, and companies were optimistic about demand prospects.

Peter Cardillo, chief economist at Spartan Capital Securities, said, "The Fed chairman was very optimistic about the economy, and there is progress in inflation," adding, "This is generally favorable for stocks."

In the market, the Fed is expected to raise the base rate by 0.25 percentage points this month and is highly likely to freeze it next month. According to the CME FedWatch Tool, the probability of the Fed raising the base rate by 0.25 percentage points this month is 77.5%, and the probability of freezing it is 22.5%. After a 0.25 percentage point increase this month, the probability of freezing it next month is 64.5%.

The CBOE Volatility Index (VIX) rose 0.15 points (1.13%) to 13.45.

On the other hand, Korean-related stocks, which had been rising on the New York Stock Exchange due to President Yoon Seok-yeol's non-attendance at the summit, showed mixed results on this day. Webtoon Entertainment jumped 5.44%, and Posco Holdings rose 0.69%. In contrast, KT fell 2.66%, and KB Financial Group and Coupang each fell 0.56% and 0.21%.

Reporter Jang Seok-kyung at Hankyung.com