[New York Stock Exchange] Semiconductor Rally Ahead of SK hynix Listing... All Major Indices Close Higher

International Oil Prices End Lower

New York Fed President: "AI Investment Demand Exerting Upward Pressure on Inflation"

On July 9 (local time), the three major U.S. stock indexes closed higher across the board, buoyed by strong semiconductor stocks and a decline in international oil prices. The rally in the semiconductor sector continued as Micron Technology unveiled large-scale investment plans and SK hynix showed signs of high demand ahead of its Nasdaq listing, driving up the indexes.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (Dow Jones) finished at 52,487.41, up 139.02 points (0.27%) from the previous trading day. The S&P 500 index, which focuses on large-cap stocks, rose by 60.93 points (0.81%) to 7,543.64, while the tech-heavy Nasdaq index climbed 336.23 points (1.30%) to close at 26,206.89.

New York Stock Exchange. New York (USA) - Special Correspondent Yoonjoo Hwang

The movement of the U.S. stock market continues to be shaped by developments in the semiconductor sector. On this day, semiconductor stocks led the rally, lifting the indexes. Sandisk rose by 7.59%, Intel by 2.09%, AMD by 5.67%, VanEck Semiconductor ETF by 2.48%, and Micron by 4.52%.

Micron announced plans to expand its investment in the construction of new manufacturing processes in the U.S. to 250 billion dollars in response to soaring demand driven by the artificial intelligence (AI) boom. The company also noted that it poured the first concrete at its New York fab more than a quarter ahead of schedule.

With SK hynix's American Depositary Receipt (ADR) listing just a day away, the company reportedly set a provisional offer price at 149 dollars per share (about 225,000 won). The subscription for SK hynix has reportedly surpassed seven times the public offering amount, signaling renewed investor interest in AI-related investments.

A Federal Reserve (Fed) official also commented that the AI investment boom is a factor exerting upward pressure on inflation. On the same day, John Williams, President of the Federal Reserve Bank of New York, said at a New York Fed event, "With the expansion of AI investments, electricity prices and the prices of semiconductors and chips are soaring," adding, "This is the 'hockey stick' type of price surge that economists talk about, now happening in reality."

He continued, "If the increase in demand driven by the AI boom continues to outpace supply growth, this could become another source of inflation." In other words, there is a possibility that AI investment demand could outstrip supply and continue to drive up prices.

Megan Horneman, Chief Investment Officer at Verdant, said, "Inflation is very severe and uncertainty is extremely high," adding, "It is important to ensure that stock investments are well-diversified globally to prepare for unknown circumstances."

She also pointed out that current stock price levels may not fully reflect the possibility of at least one interest rate hike by the Fed in the second half of 2026. She added, "While continued investment in AI may have a deflationary effect in the long run, in the short term, investment activity, strong economic growth, and robust consumer sentiment are likely to combine to fuel inflation."

The drop in international oil prices also contributed positively to investor sentiment. This was attributed to U.S. President Donald Trump’s statement that he had been contacted by Iran for negotiations, which led to a fall in crude oil futures prices.

On the New York Mercantile Exchange, West Texas Intermediate (WTI) for August delivery closed at 72.08 dollars per barrel, down 1.96% from the previous session. On the ICE Futures Exchange, Brent crude for September delivery fell 2.20% to 76.30 dollars per barrel.

As debates over the economy, inflation, interest rates, and geopolitics persist, Anthony Saglimbene of Ameriprise said that the direction of the market over the next month may depend on corporate earnings.

He stated, "Companies will have to do more than simply exceed expectations. They need to demonstrate that margins remain at high levels, that earnings outlooks are robust and likely better than current analyst estimates, and that tech-driven profit growth still has enough potential to support market valuations."

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