[New York Stock Market Briefing] Rise on Apple’s ₩140 trillion investment news… Tech stocks brighten

All three major indices on the New York Stock Exchange climbed together. On news that Apple will make an additional $100 billion (about ₩139 trillion) investment in the United States, buying concentrated on tech stocks.

On the 6th (local time), the Dow Jones Industrial Average on the New York Stock Exchange (NYSE) finished trading at 44,193.12, up 81.38 points (0.18%) from the previous session. The S&P 500 Index (S&P) jumped 45.87 points (0.73%) to 6,345.06, and the tech-heavy NASDAQ Composite Index closed up 252.87 points (1.21%) at 21,169.42.

President Donald Trump is scheduled to announce that Apple will invest an additional $100 billion to expand domestic production in the United States at the White House this afternoon. Previously, after Trump took office, Apple pledged to invest $500 billion in the United States over four years. With this announcement, Apple’s investment in the U.S. increases to a total of $600 billion.

Wall Street’s analysis is that this Apple investment is a strategic move to gain advantage over competitors by benefiting from tariff incentives.

Following the news, Apple soared 5.09% today. Apple’s surge spread warmth among major tech companies with market capitalizations exceeding $1 trillion. All big techs except Microsoft rose. Amazon gained more than 4%, and Tesla rose over 3%.

By sector, movements diverged. Consumer discretionary rose by more than 2%, and consumer staples and tech also increased over 1%. Meanwhile, healthcare fell more than 1%, and energy and utilities dropped by nearly 1%.

Comprehensive entertainment company Walt Disney saw second-quarter net profit double compared to the same period last year, but its stock dropped more than 2% due to a slump in TV and film divisions. Social media company Snap plummeted 17.15% on poor second-quarter results, and fast food chain McDonald's climbed 2.98% due to strong Q2 performance.

Dovish public remarks by key figures at the Fed helped support investor sentiment, effectively cementing expectations for a rate cut in September.

Fed Board member Lisa Cook and Susan Collins, President of the Federal Reserve Bank of Boston, commented that “large-scale revisions such as those seen in the July employment report typically occur when the economy is at a turning point,” reflecting “underlying uncertainty.”

Collins also said, “July employment data sent worrying signals,” and “Large revisions can occur at economic turning points. When interpreting data, it’s necessary to remain careful and humble.”

Earlier in the day, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, stated, “It may be appropriate to adjust the policy rate in the short term,” adding, “It may be better to lower rates and observe the situation, then pause or reverse if necessary, rather than doing nothing and waiting.”

In the interest rate futures market, rate cut bets increased. According to the CME FedWatch Tool at the Chicago Mercantile Exchange, the probability that the Fed will cut the benchmark rate by 0.75 percentage points by December was reflected as high as 52.7%. It was at 46.3% around the close the previous day. The probability of a 0.25 percentage point cut in September also soared to 95.2%.

At the Chicago Board Options Exchange (CBOE), the Volatility Index (VIX) indicated 16.77, down 1.08 points (6.05%).

Reporter Gojung Sam, Hankyung.com jsk@hankyung.com