On that day, the Dow Jones Industrial Average, which tracks blue-chip stocks on the New York Stock Exchange, closed at 51,863.69, down 0.36% from the previous trading day. The S&P 500 Index, a benchmark for large-cap stocks, ended nearly flat at 7,764.64. The tech-heavy Nasdaq Composite Index closed up 0.45% at 27,244.28.
◇ Semiconductor Stocks Rise for Sixth Consecutive Trading Day
Artificial intelligence (AI) semiconductor stocksled the Nasdaq’s rise on this day. NVIDIA (0.66%), Micron (5.0%), AMD (1.34%), and SanDisk (6.82%) all rose across the board. The Philadelphia Semiconductor Index rose 2.06%, extending its winning streak to six consecutive trading days.
Meta, which had surged 11% the previous day on expectations surrounding the AI agent “Muse,” fell 0.63% on this day. The online shopping platform Shopify soared 7.4% on news that it would partner with Muse to introduce an automated payment system.
Ulrike Hoffmann-Burhard, UBS’s Chief Investment Officer (CIO) for the U.S. and Head of Global Equities, said, “We maintain a positive outlook on the artificial intelligence (AI) industry,” adding, “This is largely driven by the adoption of AI, increased revenue generation, and expanded capital expenditures.”
◇Oil Prices Fall Below $100… U.S.-Iran 3-Hour Talks
On that day, international oil prices fell below $100 per barrel as expectations of resumed talks between the U.S. and Iran coincided with hopes for improved crude oil supply from the Middle East. November Brent crude futures on the London ICE Futures Exchange closed at $99.25 per barrel, down 1.1% from the previous session. This marks the first time Brent crude prices have fallen below $100 since the 8th. On the New York Mercantile Exchange, October West Texas Intermediate (WTI) crude futures traded at $94.59 per barrel, down 1.2% from the previous day.
Delegations from the United States and Iran held talks for about three hours today at the United Nations Headquarters in New York, on the sidelines of the UN General Assembly. President Donald Trump stated, “We had very productive talks, and additional talks are scheduled very soon.”
A senior Iranian official said the same day that Iran could reopen the Strait of Hormuz within a week if the U.S. lifts its naval blockade on Iran. Saudi Arabia resumed operations of its east-west oil pipeline, partially alleviating concerns about supply disruptions.
◇Bank Stocks Weak on Hawkish Remarks by Fed Officials
Bank stocks, including JPMorgan (-3.43%), Goldman Sachs (-0.88%), Bank of America (-3.04%), and Wells Fargo (-3.92%), fell across the board as key Federal Reserve officials made hawkish remarks. The yield on the 10-year U.S. Treasury note rose slightly to 4.962%.
Tom Barkin, president of the Federal Reserve Bank of Richmond, said, “The risk of inflation is greater than the risk to full employment. It may take longer for inflation to subside completely,” adding, “Uncertainty is now the new baseline.” Susan Collins, President of the Federal Reserve Bank of Boston, also stated, “I strongly support the Fed’s decision last week to raise the benchmark interest rate to bring inflation back to target.”
◇ Attention on U.S.-China Summit… Big Tech CEOs to Attend Dinner in Large Numbers
Market attention is focused on the summit between U.S. President Donald Trump and Chinese President Xi Jinping scheduled for the 24th. President Xi, who is making a state visit to the U.S. for the first time in 11 years, is scheduled to arrive in Washington, D.C., on the afternoon of the 23rd.
The market is watching to see whether the U.S.-China summit will result in an extension of the trade truce and an announcement of cooperation in the field of AI. Following the summit, a state dinner in honor of President Xi is expected to be attended by Meta CEO Mark Zuckerberg, NVIDIA CEO Jensen Huang, Microsoft CEO Satya Nadella, Tesla CEO Elon Musk, Qualcomm CEO Cristiano Amon, OpenAI CEO Sam Altman, and Amazon founder Jeff Bezos, among others.
