Rebound as U.S.-China tension concerns ease… Nasdaq up 2.2% [New York stock market briefing]

The three major U.S. stock indices in New York rebounded in one day after the United States and China expressed their willingness to continue trade talks.

On the 13th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 46,067.58, up 587.98 (1.29%) from the previous session. The Standard & Poor's (S&P) 500 index closed at 6,654.72, up 102.21 points (1.56%), and the tech-focused Nasdaq Composite Index closed at 22,694.61, up 490.18 points (2.21%).

U.S. President Donald Trump said on the social networking service (SNS) Truth Social the previous day, "Don't worry about China. Everything will be fine," adding, "He (President Xi Jinping) doesn't want his country to go into a recession, and neither do I," signaling that he did not want a direct confrontation with China.

Earlier, on the 10th, President Trump criticized China's move to control rare earth exports and said he would impose 100% high tariffs on China, which caused a sharp drop in the New York market.

On the day, AI-related semiconductor sectors led the gains. Broadcom surged 9.88% after announcing an agreement with ChatGPT developer OpenAI on developing its own AI chips. Nvidia also rose 2.82%. Other tech stocks such as Tesla (5.42%) and Oracle (5.14%) also contributed to the index rebound.

Sam Stovall, chief strategist at CFRA Research, said, "It's not surprising that investors went in for bargain buying while AI continues to provide upward momentum (driving force)."

Koh Jeong-sam, Hankyung.com reporter jsk@hankyung.com