New York Stock Market Closes Mixed... Tech Stocks Rise on Nvidia's Boost [New York Stock Market Briefing]

Nvidia Supplies AI Semiconductors to Saudi Data Center

The three major indices of the New York Stock Exchange showed mixed trends. Tech stocks closed strong due to the news of Nvidia's large-scale supply.

On the 13th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 42,140.43, down 269.67 points (0.64%) from the previous session. The Standard & Poor's (S&P) 500 index rose 42.36 points (0.72%) to 5,886.55. The annual return of the S&P 500 turned positive. The tech-heavy Nasdaq index jumped 301.74 points (1.61%) to close at 19,010.08.

Goldman Sachs said, "Reflecting tariff cuts, strengthening economic recovery, and easing recession risks, we are raising our outlook for the S&P 500 index and corporate earnings," raising the year-end forecast from 5,900 to 6,100.

Tech stocks showed strength on this day. The wind from Nvidia seemed to stimulate investor sentiment. Nvidia announced that it would sell more than 18,000 of its latest AI chips, the 'GB300 Blackwell,' to Saudi company Humane. Nvidia's stock price jumped 5.63%. Meta (2.92%) and Amazon (1.37%) also showed strength.

U.S. President Donald Trump arrived in Saudi Arabia on this day to begin a four-day Middle East tour. The White House announced that Saudi Arabia would invest a total of $600 billion (approximately 850 trillion won) in the United States. Elon Musk, CEO of Tesla, is accompanying President Trump's tour. Tesla also rose 4.59%.

Pharmaceutical and insurance-related stocks fell. UnitedHealth, the largest health insurer in the U.S., announced a CEO change and withdrew its performance guidance for this year, causing its stock to plummet 18%. The withdrawal was due to higher-than-expected medical expenses this year. Pharmaceutical company Merck's stock also fell 4.63%, freezing investor sentiment in the pharmaceutical and insurance industries overall.

Elsewhere, quantum computing-related stock Rigetti Computing announced that its first-quarter earnings fell short of market expectations, causing its stock to plunge more than 14%. Coinbase, the largest cryptocurrency exchange in the U.S., saw its stock soar 24% as its inclusion in the S&P 500 index was confirmed.

The Consumer Price Index (CPI) for April, released on this day, fell short of market expectations. According to the U.S. Department of Labor, the April CPI rose 0.2% from the previous month. This is a rebound from March's -0.1% increase. Year-on-year, it rose 2.3%, with the rate of increase slowing from March's 2.4%.

The core CPI rose 0.2% from the previous month, slightly increasing from March's 0.1%. Year-on-year, it rose 2.8%, maintaining the same level as the previous month. Although there were some rebounds in the April figures, overall, they fell short of market expectations, receiving a positive evaluation.

Chris Zaccarelli, Chief Investment Officer (CIO) of Northlight Asset Management, said, "This has largely alleviated market concerns about a recession due to tariffs and entrenched inflation," adding, "Although high valuations (price levels relative to earnings) and market concentration remain risks for further stock price increases this year, the market is likely to continue its rally in the short term."

According to the Chicago Mercantile Exchange (CME) FedWatch Tool, the probability of the federal funds rate remaining unchanged in June is reflected at 91.7% in the futures market. The market is taking it for granted that it will remain unchanged in June.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) recorded 18.22, down 0.17 points (0.92%) from the previous session.

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