New York stock market mixed amid rebound in semiconductor and AI stocks... NASDAQ 1.11%↑ (comprehensive)

The New York stock market closed mixed on the 19th (local time) amid a rebound in technology stocks.

On this day, on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 51,966.03, down 36.38 points (0.07%) from the previous day.

The Standard & Poor's (S&P) 500 index closed at 7,690.73, up 31.29 points (0.41%) from the previous day, and the Nasdaq Composite Index, centered on technology stocks, closed at 26,430.89, up 290.85 points (1.11%).

Semiconductor and artificial intelligence (AI)-related stocks, which suffered heavy losses last week, rebounded, leading the Nasdaq index to rise.

Recently, as inflationary pressures in the U.S. and concerns about a prolonged period of high interest rates have grown, selling has continued, centered on AI-related companies that require large-scale financing. However, on this day, low-price buying flowed in amid the perception that the decline was excessive.

In particular, the Philadelphia Semiconductor Index fell 15.7% over the past eight trading days, recording the longest continuous decline since October 2008, but rose 1.61% today, turning upward for the first time in nine trading days.

Among individual stocks, Nvidia (1.38%), AMD (1.76%), Micron Technology (2.97%), and SK Hynix (4.67%) rebounded.

However, caution regarding AI-related investments remained.

Coreweave, which was at the center of the recent selloff in AI-related stocks, fell 0.44% on this day as well.

Coreweave's stock price fell more than 25% last week due to concerns about its debt burden of about $50 billion.

Michael James, managing director at Rosenblatt Securities, said of semiconductor stocks, "After the market closed last Friday, there was a perception that the selling had gone too far. There was no particularly bad news over the weekend, and investment sentiment had deteriorated too much, so it was time for a rebound."

However, he cautioned that the market is not yet out of danger, saying that technology companies are scheduled to announce their earnings over the next few days to weeks.

With companies such as Meta and Tesla scheduled to release their quarterly results, investors are paying attention to whether large-scale investment spending related to AI is leading to actual sales and profit increases.

In particular, rather than the growth prospects of the AI ​​industry itself, whether companies' profitability can be improved enough to justify overvalued stock prices and enormous investment costs is pointed out as a key variable that will determine future stock price trends.