[New York Stock Market] Mixed Close a Day Before Election as Oil Plunges and Tech Stocks Sell Off

Oil prices plunge on hopes for negotiations to end the Iran war

On November 2 (local time), the three major U.S. stock indexes closed mixed. International oil prices plunged on hopes for a ceasefire agreement between the United States and Iran, but a sharp sell-off in technology stocks pushed the Nasdaq down more than 1%.

The Dow Jones Industrial Average closed up 213.67 points (0.41%) at 51,983.98, compared with the previous trading day. The S&P 500 fell 38.67 points (0.51%) to 7,541.40, while the tech-heavy Nasdaq Composite dropped 272.68 points (1.07%) to 25,164.31.

Inside the New York Stock Exchange. New York, U.S. = Correspondent Hwang Yunju.

The market rose early in the session, buoyed by a sharp drop in international oil prices, but gave up its gains as selling intensified late in the day, particularly in technology stocks.

The weakness in technology stocks is seen as reflecting persistent concerns about the profitability of massive investments in artificial intelligence (AI). Nvidia and Meta each fell about 1%, while Apple, which was set to report earnings after the closing bell, declined 1.5%.

In particular, companies' plans for large-scale fundraising to expand AI infrastructure investments stirred investor caution. Oracle said it plans to raise a total of $20 billion (about 28 trillion won)—$10 billion through common stock and $10 billion through corporate bonds—to secure funding for AI data center construction. Its shares plunged 8%.

Semiconductor company Marvell Technology announced it would acquire optical communications components maker Lumentum for $115 billion, but shares of the two companies fell about 13% and 18%, respectively. Investors are seen as wary of the size of the deal and its profitability, despite the large-scale merger and acquisition (M&A) targeting the AI infrastructure market.

Traditional industrial stocks, by contrast, rose. Paint maker Sherwin-Williams surged about 6%, while home improvement retailer Home Depot gained 3.6%. Honeywell, 3M and Boeing also rose more than 2% each, helping lift the Dow.

CNBC reported that investment funds concentrated in AI-related stocks appeared to be moving into other sectors, including manufacturing and industrials, contributing to divergent performances between the tech-heavy Nasdaq and the Dow, which has a larger weighting of traditional industrial stocks.

Chris Larkin, managing director of trading and investing at E*TRADE, said, "Some of the arguments for the stock market's long-term rally have taken a hit in recent weeks, but they remain valid." He added, "The problem is the short-term momentum. It is difficult to sustain the rally for more than a few days without being held back by surging oil prices, concerns about AI investments, inflation and geopolitical uncertainty."

Meanwhile, international oil prices plunged on the possibility of renewed peace talks between the United States and Iran. January-delivery Brent crude fell 7.63% from the previous session to settle at $104.77 per barrel on the ICE Futures Exchange. December-delivery U.S. West Texas Intermediate (WTI) crude also dropped 7.36% to $96.46 per barrel on the New York Mercantile Exchange.

Oil prices fell on hopes that military tensions in the Middle East would ease and disruptions to crude supplies would be resolved. U.S. Secretary of State Marco Rubio said over the weekend that President Donald Trump had not yet decided whether to attack Iran, and that the U.S. government preferred a peaceful resolution to the conflict.

Statements from Iran also signaled the possibility of negotiations. According to Iranian state media, Iran's foreign minister said an agreement could be reached if the United States showed good faith.

The sharp drop in international oil prices benefited sectors with high energy costs, including airlines. United Airlines and Southwest Airlines rose about 5% and 3.6%, respectively, while cruise operator Carnival gained about 3.8%.

Meanwhile, investors are also watching the U.S. midterm elections, just one day away, and the release of key economic data. Democrats are widely expected to have a strong chance of regaining control of the House of Representatives in the midterms on November 3, but it remains uncertain which party will control the Senate.

Managing Director Larkin said, "This week, factors that could trigger market volatility remain, including the midterm elections and the release of employment data." He added, "It is a positive sign that the stock market has held up under pressure without collapsing."

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