The U.S. stock market closed higher, driven by a surge in artificial intelligence (AI) stocks and a drop in international oil prices. Notably, shares of AI-related companies like Meta and AMD rose significantly, pushing the Nasdaq index to a record high. This raises questions about whether the domestic market will continue its upward trend fueled by the U.S. tech rally.
On September 21, the Nasdaq Composite Index closed at 27,122.09, up 599.55 points (2.3%), marking its highest closing ever. This increase was the largest since a 2.6% rise on August 4.
The S&P 500 index also saw gains, closing up 114.20 points (1.5%) at 7,764.70. The Dow Jones Industrial Average rose by 366.19 points (0.7%) to finish at 52,048.83.
AI stocks led the charge, with Meta jumping 11.4% after its personal AI assistant 'Muse' topped the free app category in the U.S. Apple App Store. AMD closed up 10.0% at $615.52, surpassing a market capitalization of $1 trillion. Intel also saw a significant increase of 12.1%, while Micron rose by 2.8%.
The decline in international oil prices supported investor sentiment, fueled by growing expectations that the U.S. and Iran may find a diplomatic solution ahead of the U.N. General Assembly. West Texas Intermediate (WTI) crude for October delivery fell 4.5% to $95.78 per barrel, while Brent crude for November delivery dropped 3.4% to $100.34 per barrel.
The domestic market is expected to rise as well, buoyed by the strength of U.S. AI stocks and easing macroeconomic pressures related to interest rates and oil prices. In pre-market trading on September 21, major stocks such as Samsung Electronics (up 2.92%), SK Hynix (up 1.77%), SK Square (up 2.93%), Samsung Electro-Mechanics (up 2.80%), LG Energy Solution (up 1.70%), and Hyundai Motor (up 1.39%) were all showing gains.
Han Ji-young, a researcher at Kiwoom Securities, noted, "The stock market seems to be improving in risk appetite after digesting last week's Super Week. As macroeconomic pressures ease, the market's responsiveness to positive news is increasing."
However, the upcoming U.S.-China summit and U.N. General Assembly could introduce volatility in oil prices and interest rates. One researcher stated, "It is appropriate to set the market response strategy around 'easing macro sensitivity + recovery of narratives among leading stocks.'"
With the KOSPI surpassing the 7000 mark, attention is turning to its potential for further gains. The researcher added, "Since mid-August, the KOSPI has been trading in a range of 6400 to 7050 points, but I believe the market's resilience remains strong. Considering the rigidity in the downside, earnings, and valuations, I expect both the lows and highs to increase within the existing range after the holiday."
* This article has been translated by AI.
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