Nasdaq closes at record high…gains continue ahead of CPI release[New York Stock Market Morning Briefing]

Nasdaq hits record high…Dow·S&P also rise

Semiconductors·AI stocks strong…Broadcom·NVIDIA drive prices

Investors focus on this week’s PPI·CPI releases

The Nasdaq Composite Index closed at a record high on the 8th (local time). Wall Street investors, preparing for key inflation data scheduled for this week, continued to favor technology-focused stocks.

The tech-heavy Nasdaq index closed at 21,798.70, up 0.45%. This was the closing price after an intraday record high. The S&P500 index closed at 6,495.15, up 0.21%, and the Dow Jones Industrial Average finished trading at 45,514.95, up 114.09 points (0.25%).

Leading the gains were semiconductor and artificial intelligence-related stocks. Semiconductor firm Broadcom's shares jumped 3%, and NVIDIA, regarded as a leading AI stock, rose about 1%, recouping part of the steep declines over the past month. Amazon and Microsoft also saw share price increases.

Ross Mayfield, an investment strategist at Baird Private Wealth Management, told CNBC, "Momentum for AI spending and AI infrastructure build-out remains very strong, and it is not concentrated only in the 'Magnificent Seven.'" He added, "Even average tech stocks are showing very good momentum," emphasizing, "Overall strength is clear."

Investors are waiting for two key inflation indicators to be released this week. These are expected to provide additional clues about the health of the U.S. economy after weaker-than-expected employment data on the 5th. The August Producer Price Index (PPI) report is scheduled for release on the morning of the 10th, followed by the August Consumer Price Index (CPI) on the 11th.

On the 5th, the U.S. Labor Department said nonfarm payrolls in August increased by only 22,000 from the previous month. This was far below the Dow Jones consensus forecast of 75,000. It was the lowest figure since October last year and only about a quarter of July's job gain (79,000). July's 79,000 increase was also about half of June's increase (144,000). This has been interpreted as a rapid slowdown in the labor market. Among investors, expectations have risen that the U.S. central bank (Fed) will effectively implement a rate cut at the Federal Open Market Committee (FOMC) meeting to be held on the 16th–17th of this month. According to the Chicago Mercantile Exchange (CME)'s FedWatch tool, some market participants are even suggesting the possibility of a 0.5% point cut.

Mayfield said, "The market currently lacks a catalyst," and added, "Having reached record highs and entering a seasonally weaker period, there could be some downward pressure." He also said, "The market is likely to remain in a waiting mode until the CPI release," adding, "Unless a surprise event related to tariffs or trade issues occurs, it will be difficult for a special variable to emerge."

New York = Shin-young Park, correspondent nyusos@hankyung.com