[뉴욕=뉴스핌] Correspondent Kim Min-jeong = In the New York stock market, major indices all closed higher on the 20th (local time). Microsoft, which hired former Open AI CEO Sam Altman, led the strong performance of technology stocks, hitting record highs.
On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 35,151.04, up 203.76 points (0.58%) from the previous day, recording the highest since August 9. The Standard & Poor’s (S&P) 500 index, which focuses on large-cap stocks, jumped 33.36 points (0.74%) to 4,547.38, exiting the correction period that day and recording the highest closing price since August 1. The Nasdaq composite index, centered on technology stocks, rose 159.05 points (1.13%) to 14,284.53, recording its highest closing price since July 31.
Sam Altman, former CEO of OpenAI, and Satya Nadella, CEO of Microsoft.[사진=블룸버그] 2023.11.21 [email protected]
What caught the most attention in the New York stock market that day was Microsoft’s recruitment of Altman and Open AI’s internal strife. OpenAI’s board of directors suddenly fired Altman on the afternoon of the 17th, and maintained its intention to fire Altman despite dissuasion from investors and employees over the weekend. Eventually, Microsoft announced that it was hiring Altman and Greg Brockman, another OpenAI co-founder.
More than 700 of OpenAI’s total 770 employees are putting pressure on the board of directors by signing a letter saying they will follow Altman to Microsoft if the board does not resign.
As Microsoft recruited leading talents in the artificial intelligence (AI) industry, including Altman, Microsoft’s stock price rose 2.05% and closed at an all-time high of $377.44.
“This deal is a clear win for Microsoft,” said Kirk Matteron, an analyst at Evercore ISI. “It will help offset concerns about potential near-term uncertainty related to Open AI.”
The Nasdaq 100 index rose 1.2% to 16,027.06, hitting a new high amid Microsoft’s strength.
The fact that bidding for 20-year government bonds was strong was also positive for stock market investment sentiment. Solid demand was confirmed in the $16 billion 20-year bond bid conducted by the U.S. Treasury that day.
As a result, long-term interest rates fell in the New York bond market. The global bond benchmark 10-year maturity U.S. Treasury yield was 4.422%, down 1.9bp (1bp = 0.01% point) from the previous period, and the 30-year yield was 4.570%, down 2.7bp. Bond interest rates move inversely to prices.
However, the 2-year bond, which is sensitive to policy interest rates, rose 0.6bp to 4.913%.
By industry, 9 of the 11 S&P 500 industries rose, excluding consumer staples, which fell 0.01%, and utilities, which fell 0.31%.
Among these, the technology industry led the overall index rise by rising 1.50%, and communication services also showed a strong 1.05% increase.
Experts said that optimism about stocks is spreading on Wall Street. Manish Kabra, a strategist at Societe Generale (SG), predicted that the S&P 500 index would rise to an all-time high early next year.
Strategist Cabra explained, “The S&P 500 index is currently in a low-priced buying zone, and leading profit indicators continue to improve.”
However, Cabra strategist said, “The journey until the end of the year will not be easy,” citing signs of an economic slowdown, corporate bond sales, and ongoing quantitative tightening (QT).
|New York Stock Exchange (NYSE) [사진=로이터 뉴스핌]|
Investors are paying attention to Nvidia’s performance after the market closes on the 21st. NVIDIA is expected to have achieved significant performance improvement in the third quarter due to demand for semiconductors due to generative AI. NVIDIA closed up 2.28% on the day.
Looking at featured stocks, Zoom Video Communications, which discloses performance after the market closes, finished regular trading up 2.93%. Aircraft manufacturer Boeing rose 4.66% due to Deutsche Bank’s upward revision of its investment opinion.
On the other hand, the stock price of pharmaceutical company Bristol Myers Squibb (BMS) plunged 3.83% in the aftermath of German competitor Bayer’s suspension of clinical trials for a new anticoagulant drug.
The US dollar weakened. The dollar index, which shows the value of the dollar against six major currencies, recorded 103.45, down 0.45% from the previous day. The euro/dollar exchange rate rose 0.27% to $1.0946, and the dollar/yen exchange rate fell 0.85% to 148.33 yen.
International oil prices rose as expectations continued for additional production cuts by OPEC+, a group of oil producing countries including Russia. On the New York Mercantile Exchange (NYMEX), the price of West Texas Intermediate (WTI) crude oil for December delivery closed at $77.60 per barrel, up $1.17 (2.3%) from the previous day. January futures, which are traded as front-month contracts starting tomorrow (21st), rose by $1.79 (2.4%) to close at $77.83.
On the London ICE Futures Exchange, the January Brent crude oil contract was recorded at $82.32, up $1.71 (2.1%) from the previous price.
The price of gold fell. Spot gold closed at $1,972.60 per troy ounce, down 0.4%, and gold futures on the New York Mercantile Exchange (COMEX) closed at $1,975.00, down 0.5%.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), called ‘Wall Street’s fear index’, fell 2.54% to 13.45.