In the New York Stock Exchange, all three major indices rose. The market cheered the news that OpenAI CEO Sam Altman, known as the ‘father of ChatGPT’, was leaving Microsoft (MS). NVIDIA, which rose ahead of its earnings announcement, also led the overall stock market.
On the 20th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 0.58% from the previous trading day to 35,151.04, and the Standard & Poor’s (S&P) 500 Index, centered on large-cap stocks, rose 0.74% from the previous trading day to 4,547.38. , the Nasdaq index, which focuses on technology stocks, ended trading at 14,284.53, up 1.13% from the previous trading day.
The stock market was shaken around Microsoft, where CEO Altman decided to join. MS recorded an all-time high of 377.44, up 2.05% compared to the previous day. Expectations for Microsoft were heightened by the news that MS CEO would create a new AI research team by recruiting CEO Altman, who was ousted from Open AI. Due to the surge on this day, MS’s market capitalization exceeded $2.8 trillion, putting it on the verge of reaching $3 trillion. Other than Apple, no company has yet surpassed 3 trillion won in market capitalization. Large technology stocks rose simultaneously in response to Microsoft’s surge, contributing to the index’s rise.
The decline in government bond yields amid expectations that the U.S. Central Bank (Fed) will cut interest rates next year also supported the rally centered on technology stocks. The U.S. interest rate futures market expected the Fed to make its first interest rate cut as early as May next year. The probability that the Fed will lower interest rates by May next year was 57.8%, and the probability of freezing interest rates was 41.3%. The market expected the Fed to cut interest rates by a total of 100bp (1bp = 0.01% point) next year. The interest rate on 10-year government bonds, the benchmark, fell 2bp to 4.41% on this day, and the interest rate on 2-year government bonds, which is sensitive to interest rates, was traded at 4.89%, down about 1bp. The market’s attention is focused on the Federal Open Market Committee (FOMC) minutes to be released on the 21st.
NVIDIA, which is about to announce its earnings on the same day (21st), also broke an all-time high. It is interpreted that expectations that performance will exceed market expectations have pushed up stock prices. On this day, Nvidia rose 2.25% to 504.09. In addition to NVIDIA, other large semiconductor stocks such as Intel (2.12%), Micron (1.37%), and AMD (0.75%) also rose, and the Philadelphia Semiconductor Index, which consists of major semiconductor stocks, closed up 1.52%.
Meanwhile, the New York Stock Exchange will be closed on the 23rd due to the Thanksgiving holiday. It is also scheduled to close early the next day, the 24th.
Shin Hyun-ah, Hankyung.com reporter [email protected]