U.S. stocks rose across the board as optimism about progress in negotiations between the U.S. and Iran led to declines in international oil prices and U.S. Treasury yields. The Dow Jones Industrial Average reached a new all-time high, although NVIDIA saw a drop due to profit-taking. Meanwhile, the domestic market is expected to experience a pause following its recent surge.
On May 21, the Dow Jones Industrial Average closed up 276.31 points (0.55%) at 50,285.66, surpassing its previous record of 50,115.67 set on February 6.
The S&P 500 index rose 12.75 points (0.17%) to close at 7,445.72, while the tech-heavy Nasdaq composite gained 22.74 points (0.09%) to finish at 26,293.10.
The New York market saw increased volatility early in the session due to news related to the Iran negotiations, but later rebounded as expectations for a diplomatic resolution between the U.S. and Iran grew stronger.
President Donald Trump mentioned the negotiations were in the 'final stage,' and the U.S. Secretary of State hinted at the possibility of progress, boosting investor sentiment.
International oil prices and U.S. Treasury yields also fell. July Brent crude futures dropped 2.32% to $102.58 per barrel, while July West Texas Intermediate (WTI) crude futures fell 1.94% to $96.35. The yield on the U.S. 10-year Treasury note decreased to around 4.57%.
In individual stocks, NVIDIA, which reported strong earnings the previous day, fell 1.8%. Despite exceeding market expectations, the decline was attributed to profit-taking following its recent surge.
Conversely, IBM surged 12.4% on expectations of subsidies related to quantum computing, with other related stocks like Rigetti Computing also performing well. Walmart, however, fell 7.27% due to a conservative earnings outlook and concerns over fuel costs.
The domestic market is expected to digest profit-taking pressures following KOSPI's 8.42% surge the previous day. However, the stability of U.S. interest rates and ongoing optimism regarding U.S.-Iran negotiations are seen as supporting factors.
As of 8:35 a.m. on the NXT pre-market, Samsung Electronics was up 0.6%. Hyundai Motor showed slight gains, while SK Telecom rose over 10%, and LG Electronics and Doosan Enerbility recorded gains of around 5%.
Analysts suggest that high volatility may continue in the near term, but the trend of leading stocks centered around the AI value chain is expected to remain intact.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Recent markets have been heavily influenced by inflation, interest rates, and geopolitical factors, but ultimately, the key will be the progress of U.S.-Iran negotiations. Sectors with strong earnings potential in the AI value chain, such as semiconductors and IT hardware, are likely to maintain relatively stable performance even in a volatile environment."
* This article has been translated by AI.
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