[Edaily Reporter kyoungeun kim ] On the 12th (local time), the New York stock market closed mixed. The Philadelphia Semiconductor Index fell to its lowest level in three weeks on news of technological advancements by Chinese memory chipmaker CXMT. International oil prices also surged due to the third consecutive day of attacks by Yemen’s Houthi rebels on Riyadh Airport in Saudi Arabia, fueling inflation concerns. However, expectations that third-quarter corporate profits would increase by 25–30% year-over-year prevented a broader market decline.

Microsoft (MS) unveiled its third-generation in-house AI chip, the “Maia 300,” and announced that it will begin mass production of more than 1 million units starting next year. This is seen as a sign that the competition among Big Tech companies to develop their own chips—in an effort to reduce dependence on NVIDIA—is gaining momentum.

Here are the news stories to watch before the market opens on the 13th.

◇ Mixed Trading on New York Stock Market… Dow up 0.38%·Nasdaq down 0.44%

- On the 12th (local time), the Dow Jones Industrial Average closed at 51,850.55, up 0.38% from the previous trading day. The S&P 500 index closed at 7,807.24, down 0.06%, while the Nasdaq index closed at 27,245.90, down 0.44%. The S&P 500 index remained near its all-time high.

- The energy and communication services sectors performed strongly. Energy-related stocks such as ExxonMobil and Chevron, as well as Meta, rose. Microsoft climbed 0.9% on news of its own AI chip, pushing its market capitalization back above $4 trillion for the first time in about a year.

- Bloomberg Intelligence forecasts that third-quarter net income for S&P 500 companies will increase by about 25% year-over-year. Financial information provider LSEG forecasts a growth rate of 30.6%. Goldman Sachs upgraded its equity investment rating to “Overweight” for the next three months, citing robust corporate earnings growth and easing valuation pressures. The U.S. stock market has risen about 120% since its 2022 low, marking the fourth anniversary of the bull market.

◇ Semiconductor Stocks Hit 3-Week Low Amid CXMT 4F² Technology Advances

- The Philadelphia Semiconductor Index fell 2.67% to 12,236.92, its lowest level in three weeks. Micron closed down 3.88% at $989.04. Memory and storage-related stocks, including SanDisk, Seagate, and Western Digital, also declined.

- Qiao Kanwei, CEO of China’s CXMT, announced at an industry event in Shanghai that the company had made significant progress in developing “4F² (4F Square)” technology, a next-generation DRAM architecture. He previewed plans to unveil DDR5 memory products for servers incorporating this technology by the end of the year. Concerns are growing that competition with South Korean companies could intensify, as “ SamsungElectronics(005930)” is targeted for 2028 and “ SK hynix(000660)” is a technology for which the roadmap was unveiled last year.

- However, there are counterarguments that technological development does not necessarily equate to competitiveness in mass production. Specific details regarding performance, production yield, and supply volume have not been disclosed, and the product differs from High Bandwidth Memory (HBM), which SK hynix and SamsungElectronics are focusing on. Analysts assess that whether CXMT actually enters the server DRAM market will depend on its mass production capabilities and ability to secure customers.

◇ Attacks on Riyadh Airport in Saudi Arabia Enter Third Day… Brent Crude Nears $107

- Yemen’s Houthi rebels attacked Riyadh, Saudi Arabia, again on the 12th (local time). The Saudi government stated that additional missile and drone attacks had occurred and announced that Riyadh Airport would remain closed for the time being. The three-day attack from the 10th to the 12th left 15 dead and more than 300 injured.

- Brent crude closed at $106.65 per barrel, up 1.84%. West Texas Intermediate (WTI) rose 2.06% to $93.74, hitting its highest level this month. President Trump announced that Russia and Ukraine had agreed to halt attacks on each other’s energy facilities, but the Ukrainian side stated that Russian attacks were continuing, raising doubts about the agreement’s effectiveness.

- According to CME FedWatch, the probability of a Fed rate hike this month rose from 17.7% on the 9th to 22%. Beth Hamack, President of the Cleveland Fed, emphasized that tight monetary policy is necessary to curb inflation. The bond market was closed for Columbus Day. As of the previous trading day, the 10-year Treasury yield stood at 5.24%.

◇ Microsoft Unveils ‘Maia 300’… Plans to Deploy Several Gigawatts Next Year

- Microsoft (MS) unveiled its third-generation proprietary AI chip, the “Maia 300.” The company explained that it can process approximately 40% more AI computations per megawatt than leading graphics processing unit (GPU)-based systems. It adopted a “chiplet” approach, utilizing Taiwan Semiconductor Manufacturing Company’s (TSMC) 2-nanometer process for the core compute chip and its 3-nanometer process for other functional chips.

- The company plans to deploy the Maia 300 in data center infrastructure on a scale of several gigawatts (GW) starting next year. The goal is to supply more than 1 million units. Microsoft’s annual capital expenditures this year are expected to exceed $175 billion (approximately 233 trillion won). This new product announcement is seen as a strategic move to reduce the soaring operating costs of AI services and lower dependence on NVIDIA.

◇ Key Events This Week… JP Morgan and Goldman Sachs Earnings on the 13th, CPI on the 14th

- On the 13th (local time), JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo will report their third-quarter earnings. On the 14th, Bank of America and Morgan Stanley are scheduled to report earnings, and the September Consumer Price Index (CPI) will be released. The Producer Price Index (PPI) will be announced on the 15th.

- The extent to which high oil prices have been reflected in inflation is a key factor that will determine the Fed’s future interest rate path. Brett Kenwell, an investment strategist at eToro, warned, “Strong earnings growth among companies has supported the stock market rally despite high interest rates and inflation,” adding, “If earnings fall short of expectations, it could trigger a broad market correction.”