[New York Stock Market] Mixed Economic Indicators Lead to Slight Gains... Nasdaq Up 0.21%

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[Asia Economy New York=Special Correspondent Joselgina] Major indices of the U.S. New York stock market closed slightly higher within a narrow range on the 18th (local time), monitoring mixed economic indicators.

On the day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 33,999.04, up 18.72 points (0.06%) from the previous session. The large-cap S&P 500 index rose 9.70 points (0.23%) to 4,283.74, and the tech-heavy Nasdaq index ended the day up 27.22 points (0.21%) at 12,965.34.

The market, which started lower digesting the Federal Open Market Committee (FOMC) regular meeting minutes, turned positive just before the close.

By sector, semiconductor stocks showed strength. Nvidia closed up 2.39% from the previous session. Micron (+2.21%), AMD (+2.21%), Broadcom (+3.69%), and Applied Materials (+2.14%) also rose together. Onsemi jumped more than 7%. Wolfspeed surged nearly 32%, supported by high sales estimates.

Energy stocks also rose due to the increase in oil prices. Halliburton and Devon Energy rose 5.78% and 5.89%, respectively. Occidental Petroleum (+3.03%) and ExxonMobil (+2.36%) also closed higher.

U.S. department store chain Kohl's, which released earnings on the day, saw its stock fall nearly 8% despite quarterly results beating expectations, after lowering its annual guidance. Cisco, which reported earnings after the previous day's close, rose 5.81%. Bed Bath & Beyond, a representative meme stock that had recently rallied, plunged 19.63% after Ryan Cohen, chairman of GameStop, announced he would sell his entire stake.

Investors digested the FOMC regular meeting minutes released the previous day, focusing on corporate earnings and economic indicators. In the July FOMC minutes, the Federal Reserve reaffirmed its stance to continue raising interest rates until inflation is clearly under control. However, it also hinted at the need to slow the pace of hikes at some point in the future, indicating it will monitor the economic impact.

Neel Kashkari, president of the Minneapolis Federal Reserve Bank and considered a prominent dove, said on the day, "The question now is whether we can lower inflation without causing a recession," adding, "My answer is 'I don't know'." He also mentioned, "I know we need to raise rates more to bring down inflation." James Bullard, president of the St. Louis Fed and a known hawk, also stated in an interview with the Wall Street Journal (WSJ) released on the day, "There is a long way to go to control inflation," proposing a 0.75 percentage point hike at the September FOMC meeting.

According to the Chicago Mercantile Exchange (CME) FedWatch, the federal funds (FF) rate futures market currently reflects a 59.5% chance of a 0.5 percentage point hike in September. Since more than a month remains until the September meeting, it is expected that the size of the hike will be determined based on inflation and labor data released just before the meeting.

Art Hogan, chief market strategist at B Riley Financial, evaluated that "the minutes did not provide additional insight into the future path of monetary policy," essentially indicating no new information. He explained, "Rates need to continue rising," but "how quickly and how much more depends on economic data released before the next meeting."

The U.S. economic indicators released on the day showed mixed results. The Philadelphia Federal Reserve Bank's regional manufacturing activity index for August recorded 6.2, turning positive from -12.3 the previous month. This indicates expansion in the manufacturing sector and was much better than the market forecast of -5.0. On the other hand, the Conference Board's U.S. Leading Economic Index for July fell 0.4% from the previous month to 116.6, marking a decline for five consecutive months.

U.S. existing home sales decreased for six consecutive months, suggesting a cooling housing market. According to the National Association of Realtors (NAR), July existing home sales were 4.81 million (annualized), down 5.9% from the previous month and down 20.2% year-over-year. This figure also fell short of the expert forecast of 4.86 million.

The Department of Labor reported that initial jobless claims last week were 250,000, marking a decrease for the first time in three weeks. The number fell by 2,000 from the previous week and was below the market forecast of 264,000. Bloomberg News described this as an "unexpected decline," indicating that U.S. labor demand remains strong.

Corporate earnings announcements continue. According to Bernstein, at least 90% of S&P 500 companies have reported earnings so far, with 82% beating or meeting market expectations. Bernstein evaluated that real estate, industrials, and energy sectors are leading the market.

In the New York bond market on the day, the 10-year Treasury yield fell to around 2.88%. The 2-year yield, sensitive to monetary policy, dropped to about 3.2%. The yield curve inversion, where short-term yields exceed long-term yields, continues, which is generally seen as a precursor to a recession.

Oil prices rose for the second consecutive day, recovering above $90 per barrel. At the New York Mercantile Exchange, September West Texas Intermediate (WTI) crude oil prices closed at $90.50 per barrel, up $2.39 (2.71%) from the previous session. This is the first time since the 12th that WTI closed above $90 per barrel.

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