[New York Stock Market] All Major Indices Climb on Strength in Technology Stocks

Iran Refuses Direct Meeting with U.S. Envoys

On June 30 (local time), all three major U.S. stock indices are showing upward momentum. Although uncertainty surrounding follow-up negotiations between the United States and Iran persists, buying led by technology stocks is driving the indices higher. Despite concerns about overheated AI investment, expectations for strong earnings from leading technology firms are sustaining investors' appetite for risk assets.

As of 9:57 a.m. on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average is up 84.44 points (0.16%) from the previous trading day at 52,267.18. The S&P 500 Index, which focuses on large-cap stocks, is up 22.87 points (0.31%) at 7,463.30, and the Nasdaq Index, which is tech-heavy, has jumped 160.77 points (0.62%) to 25,980.92.

Inside the New York Stock Exchange. New York (USA) - Special Correspondent Yoonju Hwang

On this day, a report from UBS that highlighted ongoing concerns about the sustainability of the increase in artificial intelligence (AI) investment drew attention.

The report stated, "We believe that investing in AI-related stocks will remain a key driver of equity market performance in the long term, but we also think that diversification both within and beyond the artificial intelligence sector is essential." It went on to explain, "This means investors may consider not only more defensive areas within the AI sector, such as data center operators and certain payment companies, but also other structural trends."

The recent rally has been attributed to consistently strong AI demand. So far, major investment firms such as Microsoft, Amazon, Alphabet, and Meter Platforms have maintained aggressive investment plans.

In contrast, hardware manufacturers like Apple have had no choice but to raise prices to reflect the high cost of memory chips, and concerns from analysts about potential weakening demand are putting downward pressure on their stock prices. In addition, Bloomberg reported that OpenAI is considering postponing its initial public offering (IPO), which could serve as a negative signal for investor sentiment toward AI chips.

CJ Muse, Managing Director and Technology Analyst at Cantor Fitzgerald, stated, "Over the past six months, the market has been fully focused on AI infrastructure, but now people are questioning whether this trend is sustainable and whether there are reasons for concern."

Nevertheless, the outlook for semiconductor companies' earnings remains positive. According to data compiled by Bloomberg Intelligence, the net profit growth rate for semiconductor companies in 2027 is projected to reach 49%, a significant increase from the 35% expected back in April.

Revenue growth is also expected to reach 37%, surpassing the late-April consensus of 29%. Both of these growth rates are much faster than the S&P 500's projected net profit growth rate of 17% (with sales expected to grow by 7.4%) in 2027.

As of this time, technology stocks are rising, with Intel up 4.68%, AMD up 3.39%, Applied Digital up 3.97%, Qualcomm up 1.95%, Cisco Systems up 1.02%, Nvidia up 1.60%, Apple up 1.55%, and Microsoft up 0.98%.

Negotiations between the United States and Iran remain uncertain. On this day, Majid bin Mohammed Al Ansari, spokesperson for the Qatari Ministry of Foreign Affairs, said, "Jared Kushner and Special Envoy Steve Witkoff are in Doha, but this time they are not meeting directly with Iranian officials."

Iranian Foreign Ministry spokesperson Esmail Baghaei also reiterated the country's existing stance, stating, "To emphasize once again, we have no meetings scheduled at any level with the United States in the coming days, so there are no meetings to cancel."

David Morrison, Chief Market Analyst at Trade Nation, diagnosed, "Investors are not seeing any signs that this bull market is coming to an end," adding, "Every time a bit of selling pressure appears, we see new buying momentum emerge."

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