US Stock Market Opens Higher, Led by AI Stocks like NVIDIA

Recovery of Investment Sentiment Due to US-China Tariff Truce and AI Deals in the Middle East

On the 14th (local time), the New York Stock Exchange opened higher, led by major tech stocks like NVIDIA, buoyed by news of AI deals in the Middle East.

As of 10:10 AM Eastern Standard Time, the S&P 500 was fluctuating at levels similar to the previous day, while the Nasdaq Composite Index rose by 0.3%. The Dow Jones Industrial Average also increased by 0.1%.

The yield on the 10-year US Treasury note rose by 2 basis points (1bp=0.01%) to 4.48%. The Bloomberg Dollar Spot Index fell by 0.3% compared to the previous day. Spot gold fell by 1.8% to $3,191.10 per ounce.

NVIDIA's stock price rose by 2% for the second consecutive day, driven by news that it will supply 18,000 of its latest Blackwell chips to Saudi Arabia and plans to supply hundreds of thousands of chips to the region over the next five years. Reports that the United Arab Emirates (UAE) will order 1 million AI chips also fueled expectations of overcoming the contraction in exports to China through the Middle East.

AMD also surged by 5% after announcing it would provide chips and software to Saudi Arabian data centers through a $10 billion project. AMD also announced a $6 billion share buyback plan.

Super Micro Computer soared by 10% on news of a multi-year partnership agreement with Saudi Arabian data center company DataVolt. Tesla continued its rebound, rising by 2.4% on the day.

The US stock market has almost fully recovered from the declines since the start of Trump's tariff war, buoyed by the US-China tariff truce and AI deal news in the Middle East, along with relief over the previous day's CPI.

BMO Capital Markets stated, "Despite concerns over tariffs and high stock prices, the 25-year bull market in the US stock market remains intact."

UBS also reported that "while uncertainty remains over the impact of Trump's tariffs and semiconductors, there is room for tech stocks to rise further." Mark Haefele, Chief Investment Officer (CIO) of UBS Global Wealth Management, argued in the report that "the valuation of excellent AI companies remains reasonable, making the risk-reward ratio attractive." However, he pointed out that "uncertainties remain over the details of the Trump administration's revised AI dissemination rules and the costs of supply chain relocation."

Guest Reporter Jung-A Kim kja@hankyung.com