[New York stock market close | October 6] Interest rates fall and rise due to performance expectations... S&P 500·NASDAQ all-time high

Broadcom and AMD are strong... Constellation surges 12.3% due to Google power contract

US 10-year interest rate falls to 5.27%... Semiconductor equipment and storage stocks are weak

The New York stock market rose thanks to falling government bond yields and expectations of improved corporate performance. As corporate news supporting the expansion of artificial intelligence (AI) investment continued, the S&P 500 and Nasdaq both recorded their highest closing prices in history.

On the 6th (local time), the Dow Jones Industrial Average closed at 51,521.28, up 253.38 points (0.49%) from the previous trading day. The S&P 500 index closed at 7,818.93, up 44.98 points (0.58%), and the Nasdaq composite index closed at 27,599.79, up 122.48 points (0.45%). The S&P 500 surpassed its highest closing price recorded last August, and the Nasdaq broke its record for two consecutive days.

As government bond interest rates fell, the burden on the stock market lessened. The U.S. 10-year Treasury bond interest rate recorded 5.270%, down 0.040 percentage points from the previous trading day. West Texas Intermediate (WTI) futures made up for the intraday decline and closed virtually flat at $89.44 per barrel, up 0.01% from the previous trading day.

Investors' attention turned to the third quarter earnings announcement scheduled for next week. The predicted third quarter profit growth rate for S&P 500 companies compiled by financial information company LSEG is 30.6% compared to the same period last year. The energy and technology sectors were expected to lead profit growth.

AI-related semiconductor companies have reflected business expansion expectations in their stock prices. Marvell Technology raised its sales forecast for fiscal 2028 from $18 billion to about $20 billion based on increased demand for data center semiconductors. The stock price rose 5.81%.

AMD rose 2.80% as CEO Lisa Su announced plans to significantly increase semiconductor supply in 2027 in response to AI demand. Broadcom also rose 3.67%. NVIDIA’s rise was relatively small, rising only 0.14%.

The entire semiconductor industry did not move in the same direction. Micron fell 1.73% and Intel fell 3.18%. Equipment companies Lam Research, Applied Materials, and KLA also fell 3.44%, 2.21%, and 4.54%, respectively. The Philadelphia Semiconductor Index closed at 13,217.82, up 45.09 points (0.34%).

The decline of storage device companies was also large. Seagate fell 9.18% and Western Digital fell 6.93%. Following Toshiba's plan to expand hard disk production, reports of competition to acquire TDK's magnetic head business emerged, highlighting concerns about intensifying competition. SanDisk also fell 2.56%. On the other hand, server and network-related companies Dell and Arista Networks rose 3.93% and 4.09%, respectively.

News of AI infrastructure investment was also good news for power stocks. Constellation Energy soared 12.3% after announcing a long-term power contract with Google. Based on a 20-year power purchase agreement, the two companies decided to increase power generation capacity by 890 megawatts (MW) by improving existing nuclear power plant facilities.

Among large technology stocks, Amazon rose 1.95% and Microsoft rose 0.78%. Tesla, Alphabet, and Apple also rose 0.52%, 0.35%, and 0.22%, respectively. Meta fell 0.41%, diverging from major technology stocks.

Consumption-related stocks also joined the upward trend. Walmart rose 2.03% and Costco rose 1.32%, while Home Depot and Lowe's rose 1.97% and 2.32%, respectively. On the other hand, the Russell 2000 index, which focuses on small-cap stocks, closed at 2,830.30, down 0.59%, compared to the large-cap index.