New York stock market boosted by performance expectations... S&P 500·NASDAQ reaches another high (comprehensive)

(New York = Yonhap News) Correspondent Kim Yeon-sook = On the 6th (local time), the three major U.S. New York stock market indices all closed higher.

In particular, as expectations for corporate performance grew ahead of the third quarter earnings announcement season, coupled with the decline in U.S. Treasury yields, the Standard & Poor's (S&P) 500 Index and Nasdaq Composite Index broke record highs.

On this day, the Dow Jones Industrial Average ended trading at 51,521.28, up 253.38 points (0.49%) from the previous day.

The S&P 500 index closed at 7,818.93, up 44.98 points (0.58%) from the previous day, and the Nasdaq composite index closed at 27,599.79, up 122.48 points (0.45%).

The market's expectations are heightened ahead of the third quarter earnings announcement season, which begins in earnest next week.

Goldman Sachs predicted that earnings per share (EPS) of S&P 500 companies in the third quarter would increase by 27% compared to the same period last year. In particular, it is predicted that companies benefiting from AI infrastructure investments will account for more than half of the total profit increase.

U.S. Treasury bond yields and oil prices, which had recently put pressure on the stock market, also showed signs of calming down.

The U.S. 10-year Treasury bond interest rate was 5.281%, down 3bp (1bp = 0.01% point) from the previous level. The previous day, interest rates on government bonds, which had risen to the highest since 2002, fell, somewhat easing concerns about further tightening by the Federal Reserve.

According to FedWatch of the Chicago Mercantile Exchange (CME), the interest rate futures market reflected the probability that the Federal Reserve will raise the benchmark interest rate at the Federal Open Market Committee (FOMC) in October at 19.4% as of this afternoon. A week ago it was 50.9%.

Supply instability has also eased somewhat due to the increase in crude oil exports from the Middle East and the agreement among the seven major countries (G7) to release oil reserves.

Brent crude oil for December delivery rose 0.26% from the previous day to close at $100.58 per barrel, and West Texas Intermediate (WTI) crude oil for November delivery rose 0.01% to $89.44 per barrel.

By stock, the increase in semiconductor companies was notable.

Semiconductor design company Marvell Technology's stock price rose 5.8% as it raised its sales forecast to reflect strong demand for data center semiconductors. AMD also rose 2.8% after announcing that it plans to significantly increase supply next year to respond to AI demand. Broadcom also rose 3.7%.

Constellation Energy, which signed a large-scale power supply contract with Google, also jumped 12.3%. It is interpreted that this reflects expectations of increased power demand due to the expansion of AI data centers.

Stephen Colano, Chief Investment Officer (CIO) of Integrated Financial Partners, said, “Investors are taking a flexible view of inflation concerns right now,” and analyzed that the market is focusing on earnings growth and AI investment.