The U.S. stock market rebounded as concerns over investments in the artificial intelligence (AI) sector eased, particularly boosting semiconductor stocks. However, the strengthening of the dollar due to expectations of interest rate hikes in the U.S. and rising international oil prices amid geopolitical uncertainties in the Middle East continued to create tension in financial markets.
According to the International Financial Center, on November 11, the Standard & Poor's (S&P) 500 index rose 1.31% to close at 7,619.4. The tech-heavy Nasdaq index surged 1.7%, while the Philadelphia Semiconductor Index jumped 5.9%. The domestic KOSPI also closed up 2.60% at 5,375.4.
Concerns regarding the profitability and sustainability of investments in the AI sector, which had pressured the market, have eased. Reports indicate that the earnings and investment demand from major AI-related companies have exceeded expectations, improving investor sentiment.
For instance, CoreWeave, an AI infrastructure company, reported third-quarter revenues of $3.66 billion, surpassing market expectations of $3.55 billion. OpenAI also saw its third-quarter revenue reach $10 billion, a 50% increase from the previous quarter and a 300% increase year-over-year. Additionally, demand for shares in Anthropic's initial public offering (IPO) exceeded the number of shares available, confirming strong investment interest in the AI sector.
However, the strengthening dollar has posed challenges for financial markets. The dollar index rose 0.67% to 102.92. The euro and yen fell by 0.66% and 0.65%, respectively. In the New York foreign exchange market, the won-dollar exchange rate was 1,337.4 won, up 3.8 won from the weekly closing price in the Seoul foreign exchange market. The one-month offshore non-deliverable forward (NDF) exchange rate was recorded at 1,336.4 won.
The dollar's strength has been influenced by expectations of U.S. monetary tightening. Key officials from the Federal Reserve have expressed concerns about inflationary pressures, strengthening the outlook for a rate hike in December. Austan Goolsbee, president of the Chicago Federal Reserve Bank, noted that inflationary pressures are spreading beyond energy and the AI sector. Philadelphia Fed President Anna Paulson also indicated that rate hikes may be necessary to curb inflation.
International oil prices have also risen. Brent crude increased by 1.39% to $92.76 per barrel. Ongoing military tensions between the U.S. and Iran, coupled with persistent differences in their positions, have raised concerns about rising transportation costs and insurance premiums for oil shipments. The International Financial Center reported that transportation and insurance costs in the Middle East have increased nearly tenfold compared to pre-war levels, suggesting that a prolonged stalemate could hinder the recovery of oil prices to pre-war levels.
* This article has been translated by AI.
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