The three major stock indices of the New York Stock Exchange rose sharply on the 9th (local time), thanks to a sharp drop in international oil prices and low-price buying of technology stocks.
On this day, on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average ended trading at 52,389.75, up 1,104.02 points (2.15%) from the previous day.
The Standard & Poor's (S&P) 500 index closed at 7,549.94, up 173.08 points (2.35%) from the previous day, and the Nasdaq Composite Index, centered on technology stocks, closed at 25,253.14, up 673.71 points (2.74%).
The stock market rally on this day was led by low-price buying centered on semiconductor stocks, which fell sharply last week.
AMD (13.26%), Broadcom (8.78%), and Marvell Technology (9.49%) rose significantly, while Micron Technology (6.25%) and SK Hynix ADR (5.53%) also showed strength.
The Philadelphia Semiconductor Index, which had fallen more than 12% on the 5th, soared nearly 7% on this day.
On the other hand, Nvidia plummeted alone, falling 4.27% after CEO Jensen Huang admitted an affair with a female businesswoman suspected of being a spy linked to Chinese intelligence agencies.
Accordingly, on this day, Nvidia's market capitalization was calculated to have decreased by approximately $192.1 billion (approximately 258 trillion won).
NVIDIA's stock price fell to $170.24 at one point during the day, a decline rate of 8.79% compared to the previous day.
In addition to growing uncertainty about CEO Hwang's future, concerns that the U.S. authorities' surveillance of Nvidia's semiconductor sales to China may be strengthened as a result of this incident also weighed on investor sentiment.
However, as other major semiconductor stocks showed strong performance, Nvidia's individual bad news did not appear to spread to the overall AI industry.
A sharp drop in international oil prices also supported the stock market rise.
On this day, the closing price of West Texas Intermediate Crude Oil (WTI) futures on the New York Mercantile Exchange recorded $86.85 per barrel, down 4.38% from the previous trading day. Brent crude futures, a global benchmark, also plunged 5.85% to close at $92.57 per barrel.
This is due to increased expectations for easing military tensions in the Middle East region as U.S. President Donald Trump stated that the likelihood of additional large-scale airstrikes against Iran is very low.
In particular, with market attention focused on price indicators ahead of the Federal Open Market Committee (FOMC) meeting in December, the plunge in international oil prices raised expectations for easing inflation pressure.
The market estimates that despite this rebound, there are still concerns about the aftermath of last week's plunge in technology stocks and the concentration of investment in AI-related stocks.
“The market is currently showing the resilience needed to turn last week’s weakness into another buying opportunity,” said Mark Hackett, head of investment research at Nationwide.
Ulrike Hoffmann-Burchardi of UBS's Chief Investment Officer's Office evaluated the recent plunge in technology stocks as a rebalancing of investment positions rather than a structural decline in the AI investment cycle, but pointed out that "this rebound does not resolve the risks resulting from excessive expectations and concentration of investment in specific stocks."
