As news of former Open AI CEO Sam Altman’s departure broke, technology stocks, including those related to artificial intelligence (AI), showed strength.
|▲ The New York stock market closed strongly on the 21st local time. The photo is of the New York Stock Exchange.|
At the New York Stock Exchange (NYSE) on the 20th local time, the Dow Jones Industrial Average closed at 35,151.04, 203.76 points (0.58%) higher than the previous trading day.
The Standard & Poor’s (S&P) 500 index, centered on large-cap stocks, closed at 4,547.38, up 33.36 points (0.74%), and the Nasdaq index, centered on technology stocks, closed at 14,284.53, up 159.05 points (1.13%). Due to the rise on this day, the Nasdaq index recorded an all-time high.
Jiyoung Han, a researcher at Kiwoom Securities, analyzed, “The U.S. stock market closed higher due to strong technology stocks such as the news of Microsoft’s hiring of former Open AI CEO Sam Altman, improved investment sentiment due to strong bidding for 20-year U.S. Treasury bonds, and expectations for Nvidia’s performance.”
The aftermath of Open AI’s founder Sam Altman’s ouster also had an impact on the stock market.
Open AI negotiated reinstatement of Sam Altman a day after his dismissal following the board of directors’ decision, but the negotiations were unsuccessful.
Afterwards, as news broke that Sam Altman had joined Microsoft (MS) along with CEO Greg Bockman, Microsoft’s stock price soared 2.05% due to expectations of positive benefits. Microsoft stock price set a new all-time high recorded on the 16th.
NVIDIA (2.28%) shares also showed strength, breaking an all-time high. In addition to expectations for reflected benefits, expectations for the performance announcement on the 21st came in.
In addition, technology stocks showed strength, with the stock prices of seven big tech companies rising simultaneously. Stock prices were strong, including Apple (0.93%), Amazon (0.65%), Alphabet (0.69%), Tesla (0.55%), and Meta (1.47%).
Bidding for U.S. 20-year Treasury bonds was strong, which had a positive impact on investor sentiment.
According to the U.S. Treasury, 20-year U.S. Treasury bonds were issued at 4.780%. The bid rate was 2.58 times, confirming solid demand. Accordingly, the interest rate on 10-year government bonds was lowered to 4.42% and the interest rate on 30-year bonds was lowered to 4.57%.
One researcher analyzed, “Investment sentiment improved with the news of a decline in long-term interest rates, contributing to the rise of the Nasdaq index, centered on technology stocks.”
Looking at each industry, industries such as IT (1.5%), telecommunications (1.0%), and real estate (0.8%) were strong. The utilities (-0.3%) and consumer staples (-0.01%) sectors are weak. Reporter Jeong Hee-kyung