Big Tech Takes Center Stage: New York Stock Market Surges as Investors Eye Economic Indicators

[뉴욕=뉴스핌] Correspondent Kim Min-jeong = In the New York Stock Exchange, major indices all closed higher on the 28th (local time). Investors are waiting for the announcement of major big tech companies‘ earnings and important economic indicators scheduled for this week.

On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 42,387.57, up 273.17 points (0.65%) from the previous day. The Standard & Poor’s (S&P) 500 index, centered on large-cap stocks, rose 15.40 points (0.27%) to 5823.52, and the NASDAQ composite index centered on technology stocks advanced 48.58 points (0.26%) to 18,567.19.

Investors are paying attention to the earnings disclosures of big tech companies this week. Alphabet, Microsoft, Metaplatforms, Amazon.com, and Apple release their earnings this week.

Experts expect that if these companies’ performance exceeds expectations, their stock prices will rise further and support overall market sentiment. Mike Dixon, head of research at Horizon Investments, said, “Given the high valuation, investors will be hyper-focused if these growth numbers are recorded.”

“Performance will be important for guidance on what kind of capital spending programs companies can implement next year,” said Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute.

New York Stock Exchange (NYSE) trader.[사진=로이터 뉴스핌]2024.10.25 mj72284@newspim.com

Major economic indicators are also scheduled to be released this week. On the 30th, the third quarter gross domestic product (GDP) breaking news will be released, on the 31st the September personal consumption expenditure (PCE) price index, and on the 1st the October employment report. These economic indicators are expected to have a significant impact on the monetary policy outlook at the Federal Open Market Committee (FOMC) regular meeting on the 7th of next month. Currently, market participants are strongly reflecting the possibility that the Federal Reserve will cut interest rates by 0.25 percentage points (%p) at next month’s meeting in asset prices.

Investors are also focusing their attention on the results of the US presidential election, which will be held on the 5th of next month. Democratic Vice President Kamala Harris and Republican former President Donald Trump are locked in a very close race in recently released opinion polls. However, Reuters explained that the market is generally reflecting Trump’s second term in asset prices.

“The pre-election jitters have still not shown up in the stock market,” said Callie Cox, chief market strategist at Ritholtz Wealth Management. “This will be the first October without any major movements,” he analyzed.

By stock, the stock price of Robinhood, which launched a presidential election betting product, rose 3.03%. Trump Media & Technology Group’s stock price soared 21.59% on bets on former President Trump winning.

Energy-related stocks also showed weakness as oil prices plummeted. Chevron fell 0.18% and Exxon Mobil also fell 0.49%. International oil prices fell sharply due to relief that Israel’s retaliatory attack on Iran did not target oil facilities. On the New York Mercantile Exchange (NYMEX), West Texas Intermediate (WTI) crude oil for December delivery closed at $67.38 per barrel, down $4.40 (6.1%) from the previous price. The December contract for Brent crude oil on the ICE Futures Exchange was recorded at $71.42 per barrel, down $4.63 (6.1%) from the previous day. Brent crude oil and WTI recorded their largest one-day decline since July 2022.

U.S. Treasury yields rose. As of 3 p.m. in the New York bond market, the interest rate on 10-year maturity U.S. Treasury bonds stood at 4.277%, up 4.6bp (1bp = 0.01%p) from the previous day. The 2-year bond, which is more sensitive to policy interest rates, rose 4.5bp to 4.142%. Bond interest rates move inversely to prices.

The US dollar moved in a strong convergence zone. The dollar index, which shows the value of the dollar against six major currencies, recorded 104.30, up 0.04% from the previous day. The euro/dollar exchange rate rose 0.19% to $1.0817, and the dollar/yen exchange rate rose 0.63% to 153.26 yen.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), called ‘Wall Street’s fear index’, recorded 19.73, down 2.75% from the previous day.

mj72284@newspim.com