M&A as a Nutrient for US Stock Market Rise... Strong Performance Due to TikTok and ARM Effects (Comprehensive)

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The U.S. stock market rebounded, buoyed by corporate mergers and acquisitions (M&A) announced over the weekend. With M&A activity concentrated in the technology sector, the Nasdaq market also escaped its slump.

On the 14th (local time), the Dow Jones Industrial Average rose 327.69 points (1.18%) to close at 27,993.33, the S&P 500 index increased by 42.57 points (1.27%) to 3,383.54, and the Nasdaq index gained 203.11 points (1.87%) to finish at 11,056.65.

Nvidia, a company specializing in computer graphics cards, announced it would acquire semiconductor design company ARM from Japan's SoftBank for $40 billion, causing its stock to rise 5.8%.

Software company Oracle officially confirmed on the same day that it had agreed to a technology partnership with ByteDance, the parent company of the Chinese video-sharing app TikTok. Oracle's stock rose 4.3% that day, but since it is not expected to be a full acquisition of TikTok, it remains uncertain whether it will meet the U.S. government's standards.

However, U.S. Treasury Secretary Steven Mnuchin stated that "our technical team will discuss with Oracle over the next few days and will review whether the information of U.S. TikTok users is secure within this week." He further projected that TikTok would establish its headquarters in the U.S. and create 20,000 new jobs.

Tesla, which had experienced nearly a 30% correction last week, surged more than 12.5%, while Nikola, a hydrogen truck company facing fraud allegations from short sellers, rebounded 11.3% amid active explanations from the company.

International oil prices fell slightly due to concerns over weak demand. October delivery West Texas Intermediate (WTI) crude oil closed down 0.2% ($0.07) at $37.28 per barrel. December delivery gold closed up 0.8% ($15.80) at $1,963.70 per ounce.

This content was produced with the assistance of AI translation services.