[New York Stock Market] Apple Leads Rally Amid Inflation Concerns... Nasdaq Up 2.87%

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Major indices of the U.S. New York stock market closed higher on the 28th (local time). Technology stocks, which had plunged due to earnings shocks, also rebounded. In particular, the stock price of Apple, the largest company by market capitalization, surged to its highest level since April 2020, leading the market rally.

On Friday at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 32,861.80, up 828.52 points (2.59%) from the previous session. The Dow, composed of blue-chip stocks, recorded its fourth consecutive week of gains. The S&P 500, which focuses on large-cap stocks, closed at 3,901.06, up 93.76 points (2.46%), and the tech-heavy Nasdaq closed at 11,102.45, up 309.78 points (2.87%).

By sector, most of the 11 sectors in the S&P 500 showed rallies except for consumer discretionary. Apple, which reported earnings that exceeded market expectations after the previous day's close, rose 7.56% from the previous session, marking its highest level since April 2020. Tesla rose 1.52%, and Nvidia jumped 4.99%.

Meta Platforms (+1.29%), Google Alphabet (+4.41%), and Microsoft (+4.02%), which had previously plunged due to earnings shocks, also rebounded that day. However, Amazon, which disclosed disappointing earnings after the previous day's close and provided a weak earnings outlook, slid 6.80%.

Additionally, Intel surged more than 10% following earnings that exceeded market expectations and the announcement of a large-scale cost-cutting plan.

Investors closely watched corporate earnings, inflation, and other economic indicators that day. Amid market fluctuations caused by the tech sector earnings released this week, there is also an assessment that earnings from companies outside the tech sector exceeded expectations. Tom Esseye, CEO of Sevens Report Research, said, "Earnings announcements will dominate until late next week," adding, "Except for tech stocks, this earnings season is not as bad as previously feared."

The September Personal Consumption Expenditures (PCE) price index, an inflation indicator monitored by the Federal Reserve (Fed), rose 6.2% year-over-year. This is the same level as the previous month, indicating that high inflation persists. The PCE price index also increased 0.3% month-over-month. Notably, the core PCE price index, which excludes volatile energy and food prices, rose 5.1% year-over-year and 0.5% month-over-month.

However, this is generally considered to be in line with expectations. The Bureau of Economic Analysis stated, "Inflation in September remained strong but mostly within expectations." Megan Horneman, Chief Investment Officer at Verdence, commented, "The inflation data was not that bad." Personal consumption expenditures for September, released on the same day, increased 0.6% year-over-year, confirming that consumption, which accounts for a significant portion of the U.S. GDP, remains robust.

In the New York bond market, Treasury yields rose. The 10-year Treasury yield surpassed 4% again. The 2-year Treasury yield, sensitive to monetary policy, rose to 4.24%. The phenomenon where long-term yields, such as the 10-year, exceed short-term yields like the 2-year and 3-month (4.08%) continues. This is generally regarded as a precursor to a recession.

The dollar rose slightly. The Dollar Index, which measures the value of the dollar against six major currencies, recorded a level of 110.

International oil prices fell amid concerns over China's continued zero-COVID policy. At the New York Mercantile Exchange, December West Texas Intermediate (WTI) crude oil prices closed at $87.90 per barrel, down $1.18 (1.32%) from the previous session.

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