The U.S. stock market closed higher, buoyed by strong performance in AI semiconductor stocks. The announcement of Anthropic's initial public offering (IPO) and Broadcom's funding for a major AI semiconductor purchase boosted investor sentiment in related stocks. With progress in peace talks in the Middle East leading to a decline in international oil prices, attention turns to whether the domestic market will rebound on the 28th. However, the upcoming Federal Open Market Committee (FOMC) meeting and earnings reports from major tech companies, along with SK Hynix's performance and future outlook, are expected to be short-term variables.
On the 27th (local time), the Dow Jones Industrial Average rose by 15.99 points (0.03%) to close at 52,377.57. The S&P 500 gained 45.83 points (0.60%) to finish at 4,722.60, while the tech-heavy Nasdaq Composite increased by 308.43 points (1.18%) to end at 26,477.81.
AI semiconductor stocks led the Nasdaq's rise. The anticipation of profitability in AI ventures continued following Anthropic's IPO announcement, and news that Broadcom secured $63 billion in funding for purchasing high-performance semiconductors from Anthropic further fueled optimism. Broadcom's stock rose by 4.00%, while AMD and SanDisk increased by 5.45% and 3.92%, respectively. Micron gained 2.77%, and NVIDIA rose by 0.90%. The Philadelphia Semiconductor Index climbed by 3.60%.
However, the financial burden of expanding AI investments remains a concern. Meta increased its funding for AI data centers and cloud infrastructure from $95 billion to $97.5 billion, yet its stock fell by 1.64%. As investments in AI infrastructure continue, market focus is shifting not only to the scale of investment but also to growth in core businesses and improvements in cash flow.
International oil prices fell amid expectations of progress in negotiations in the Middle East. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for December delivery settled at $99.90 per barrel, down $1.86 (1.83%). Brent crude for December delivery on the London ICE Futures Exchange dropped $1.93 (1.67%) to $113.88 per barrel. Reports that Saudi Arabia, Pakistan, Turkey, and Iran agreed to continue high-level talks influenced this decline. However, uncertainties remain due to supply disruptions in the Middle East and attacks by Houthi rebels on Saudi Arabia.
This week, the U.S. FOMC meeting and earnings reports from major tech companies are scheduled. The Federal Reserve will hold its regular FOMC meeting over two days starting on the 27th, with a decision on interest rates expected on the 28th. The market largely anticipates a hold on interest rates, but attention will be on Fed Chair Kevin Warsh's press conference for clues on future monetary policy direction and the possibility of a rate hike in December. Alphabet and Microsoft are set to report earnings on the 28th, while Amazon will do so on the 29th. A key point of interest will be whether the expansion of AI investments translates into actual revenue and cash flow improvements.
The domestic market is expected to open higher, supported by the strength of U.S. AI and semiconductor stocks and falling oil prices. As of 8:13 a.m., the NXT pre-market showed gains for Samsung Electronics (2.70%), SK Hynix (3.13%), SK Square (5.19%), Samsung Electro-Mechanics (4.50%), LG Energy Solution (2.35%), Samsung Biologics (0.07%), Hyundai Motor (1.20%), KB Financial (0.81%), Samsung Life Insurance (2.16%), and Samsung C&T (2.66%).
During the trading session, market attention is likely to focus on SK Hynix's third-quarter earnings report and conference call. The importance lies not only in the earnings themselves but also in how well the company can address market concerns regarding supply contracts and pricing conditions for High Bandwidth Memory (HBM) 4 for 2027, as well as projections for general DRAM prices. The potential for additional shareholder return policies could also influence sentiment toward semiconductor stocks and the domestic market.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Today, the domestic market is expected to open higher due to the positive news from Anthropic and Broadcom, as well as easing concerns over interest rates and oil prices stemming from reduced tensions in the Middle East."
However, during the trading session, stock movements may vary by sector depending on SK Hynix's earnings and outlook, as well as market sentiment ahead of the U.S. FOMC and big tech earnings. One researcher noted, "For SK Hynix, the resolution of market concerns regarding the 2027-2028 outlook is crucial, rather than the third-quarter earnings alone. The ability to alleviate discussions around the peak-out of the memory market through supply contracts and pricing conditions for HBM 4 and projections for general DRAM prices will be key."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.