Three major indices hit record highs despite U.S. government shutdown… semiconductor stocks strong [New York stock market briefing]

Three major indices finish five consecutive days of gains

Hot semiconductors amid lack of catalysts

The three major New York stock market indices closed higher for a fifth consecutive trading day as buying concentrated on semiconductor and artificial intelligence (AI) related stocks. With no factors to push down stock prices, the market continued its upward momentum.

On the 2nd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 46,519.72, up 78.62 points (0.17%) from the previous session.

The Standard & Poor's (S&P) 500 index closed at 6715.35, up 4.15 points (0.06%), and the Nasdaq Composite closed at 22,844.05, up 88.89 points (0.39%).

All three major stock indices closed at record highs by closing price. The S&P 500 and the Nasdaq also reached intraday record highs.

No clear catalysts that could move the market were apparent. On the second day of the shutdown, the release of U.S. government economic indicators was also delayed. The U.S. Department of Labor had been scheduled to release weekly initial jobless claims that day but postponed it.

Rather than showing risk-off sentiment because of the shutdown, the market continued the four consecutive trading-day rally that had persisted until the previous day. Market participants view that if the shutdown is short-lived, its impact on the U.S. economy would be limited, so it is not yet time to seek safe-haven assets.

Profit-taking dominated in early trading. The Nasdaq opened up 0.57% but quickly saw a flood of sell orders and turned lower intraday. However, there was no factor likely to break the recently established bullish trend.

By sector, energy fell more than 1% while materials rose more than 1%.

Large tech companies with market capitalizations of over $1 trillion traded mostly flat, while only Tesla plunged more than 5%. Tesla's third-quarter vehicle deliveries rose above expectations, but the stock faced downward pressure due to forecasts of future contraction.

West Texas Intermediate (WTI) crude oil prices came under pressure at the $60 level due to pressure from major oil-producing countries to increase output, causing refining companies such as ExxonMobil to see shares fall nearly 1%.

The Philadelphia semiconductor index, composed of AI and semiconductor-related stocks, surged 2% for a second consecutive day following the previous day. News that OpenAI is signing large-scale semiconductor supply contracts with Samsung Electronics, SK Hynix, and TSMC bolstered expectations for AI industry infrastructure. Of the 30 stocks composing the Philadelphia index, all but three rose.

Eunji Cha, Hankyung.com reporter chachacha@hankyung.com