The New York Stock Exchange’s three major indices all set new records on Wednesday.
Despite Federal Reserve Chairman Jerome Powell’s statement that the Fed wouldn’t rush to raise interest rates before the upcoming Federal Open Market Committee (FOMC) meeting on December 17 to 18, the market did not react negatively.
The Dow Jones Industrial Average surpassed 45,000 for the first time, while the S&P 500 and Nasdaq continued their record-breaking streaks for the fourth and third consecutive trading days, respectively.
The M7 big tech stocks led the market’s upward momentum, rebounding sharply.
Meanwhile, the iShares MSCI Korea ETF (EWY), which focuses on large and mid-cap Korean stocks, bounced back with a 0.7% gain after falling 1.6% the previous day.
Dow Surpasses 45,000 Mark
The Dow closed at 45,014.04, up 308.51 points or 0.69%, marking its first-ever close above 45,000.
This resumes the Dow’s record-setting streak that had paused in early December after reaching a peak on November 29.
The S&P 500, widely considered to reflect the overall market performance best, notched its fourth consecutive record high since November 29, closing up 36.61 points or 0.61% at 6,086.49.
The Nasdaq also set new records for three straight days this month, raising the possibility of breaking 20,000 for the first time. It finished up 254.21 points or 1.30% at 19,735.12.
South Korean Stocks Recover From Shock
Korean stocks listed on the New York Stock Exchange recovered from the previous day’s shock, though overall trends remained subdued.
The iShares MSCI Korean ETF EWY rose 0.72% or $0.40 to close at $56.21.
After plunging 3% following a martial law declaration and ending down 1.6% upon its lifting, EWY managed to close higher.
POSCO Holdings’ American Depository Receipts (ADR) gained 0.7% or $0.33 to close at $48.10, rebounding from the previous day’s 4% drop.
Coupang, which had dropped 3.7% the day before, narrowed its losses, closing down 0.21% or $0.05 at $23.87.
SK Telecom’s ADR fell by 1.49% or $0.35 to $23.19, continuing its decline after a 1.6% drop the previous day.
Korea Electric Power Corporation (KEPCO) saw its losses widen, with its ADR plummeting 6.80% or $0.57 to $7.81, following a 2% decline the day before.
KT dropped 2.66% or $0.48 to $17.55, while KB Financial closed down 0.56% or $0.38 at $67.28.
The Korean won rebounded, decreasing the won-dollar exchange rate by 0.2%.
In New York’s foreign exchange market, the Korean won, trading at 1,411.44 to the U.S. dollar, appreciating by 3.03 won or 0.2142%.
M7 Tech Giants Rally
The M7 big tech stocks all saw gains, driving the upward trend in New York.
Tesla reversed its downward trend, closing up 1.85% or $6.51 at $357.93, buoyed by late buying after earlier weakness.
Nvidia saw the largest increase among the M7, with a sharp 3.48% or $4.88 jump to $145.14.
Apple increased 0.15% or $0.36 to $243.01, while Microsoft gained 1.44% or $6.22 to finish at $437.42.
Meta Platforms extended its record-setting streak for a second day, closing up 0.02% or $0.13 at $613.78 after recovering from midday weakness by late buying interest.
Amazon, which recently challenged Nvidia in the AI chip market, rose 2.21% or $4.72 to $218.16, while Alphabet finished up 1.77% or $3.03 at $174.37.
Oil Prices Tumble After Previous Day’s Surge
International oil prices, which had surged the previous day, reversed and plummeted sharply.
The unexpected increase in U.S. oil inventories and a decline in the Institute for Supply Management’s November services index contributed to the oil price drop.
Political uncertainties in South Korea and France further amplified the downward pressure on oil prices.
Brent crude, the international benchmark, fell 1.78% or $1.31 to $72.31 per barrel for February delivery.
The U.S. benchmark West Texas Intermediate (WTI) crude for January delivery dropped 2.00% or $1.40 to $68.54 per barrel.
