Major Indices Take a Breather... 'Saudi Big Deal' Boosts NVIDIA Again [New York Stock Exchange Briefing]

Overnight, the New York Stock Exchange showed a breather due to a lack of new materials.

On the 14th (local time) at the New York Stock Exchange, the Dow Jones Industrial Average closed at 42,051.06, down 89.37 points (0.21%) from the previous trading day.

The Standard & Poor's (S&P) 500 index rose 6.03 points (0.10%) to 5,892.58, and the Nasdaq Composite Index increased 136.72 points (0.72%) to close at 19,146.81.

With the rise of the S&P 500 index, it surged 22% from the intraday low recorded last month, entering the overbought zone from the oversold zone.

On this day, there were no materials to move the market, but a positive atmosphere regarding the results of the US-China trade negotiations continued.

China's Ministry of Commerce announced that it would defer the implementation of retaliatory measures, which included 11 US companies in the 'unreliable entities' list, for 90 days from today. It also stated that the measure including six US military companies in the same list would be suspended indefinitely.

This is interpreted as implementing the agreements reached in the US-China trade negotiations last weekend. The major rare earth control measures included in China's retaliation on the 4th of last month were excluded from the deferral items on this day.

However, experts are cautious about premature optimism. This is because the tariffs imposed by President Donald Trump are still at a high level, and the US Federal Reserve (Fed) is also cautious about cutting interest rates.

Philip Jefferson, Vice Chairman of the US Fed, said, "Recent inflation indicators have pointed to progress toward the Fed's 2% target, but the outlook remains uncertain."

The 'Magnificent 7', referring to seven major US tech companies, showed mixed results.

NVIDIA showed a strong 4.16% gain following the previous day. This is believed to be due to a large supply contract with Humane, a local AI company owned by Saudi Arabia's Public Investment Fund (PIF).

Tesla rose more than 4%, and Alphabet also showed a strong 3% gain.

AMD's stock price rose nearly 5% on news that it would expand its $6 billion share buyback program.

Oklo, a small modular reactor (SMR) developer, saw its stock price surge 15.55% on news that it completed groundbreaking for the construction of the first small modular reactor at the Idaho National Laboratory site in the US.

American Eagle Outfitters, a US clothing brand, announced that it would withdraw its fiscal 2025 performance outlook, reflecting inventory losses due to sluggish sales and excessive discounts. As a result, the stock price plummeted 6.45%.

Jungdong No, Hankyung.com reporter dong2@hankyung.com