[New York Stock Market] Rising Ahead of Thanksgiving Holiday... Nasdaq Up 0.46%

The three major indices of the U.S. New York stock market closed higher on the 22nd (local time) ahead of the Thanksgiving holiday. The stock market will be closed on the 23rd for the Thanksgiving holiday and will close early on the 24th.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 35,273.03, up 184.74 points (0.53%) from the previous session. The S&P 500, which focuses on large-cap stocks, closed at 4,556.62, up 18.43 points (0.41%), and the tech-heavy Nasdaq closed at 14,265.86, up 65.88 points (0.46%).

Among the 11 sectors within the S&P 500, all except energy-related stocks rose. Nvidia fell more than 2% despite its earnings report released after the previous session beating expectations, due to concerns that additional export restrictions to China could impact Q4 sales. HP rose over 1% on expectations of launching AI PCs in the second half of next year despite weak earnings. Microsoft (MS), the largest shareholder expected to join the board following Sam Altman's return to OpenAI and exerting influence, rose more than 1%.

[Image source=Reuters Yonhap News]

Investors monitored stock price movements following earnings announcements from major companies including Nvidia, along with economic indicators, Treasury yields, and oil price movements. Optimism continues based on expectations that the U.S. Federal Reserve (Fed) will not raise interest rates further as the year-end approaches. Quincy Crosby, Chief Strategist at LPL Financial, said, "Overall, conditions are solid," adding, "Despite concerns about the economy and consumer spending, the market is the most favorable."

The indicators released that day were generally not positive for the stock market. The unemployment data suggested the labor market remains strong. Weekly initial jobless claims last week decreased by 24,000 from the previous week to 209,000, the lowest level in five weeks. This also fell short of the expert forecast of 229,000. The University of Michigan's one-year inflation expectations rose to 4.5% from 4.2% the previous month. On the other hand, consumer sentiment worsened. Durable goods orders in October also fell 5.4% month-over-month, indicating economic slowdown.

In the New York bond market, Treasury yields showed mixed trends. The benchmark 10-year U.S. Treasury yield fell to around 4.40%. The 2-year yield, sensitive to monetary policy, rose slightly to about 4.89%. The dollar index, which measures the value of the dollar against six major currencies, rose more than 0.3% to 103.8 compared to the previous session. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as Wall Street's fear gauge, fell more than 3% to 12.9 from the previous session.

International oil prices declined. On the New York Mercantile Exchange, January delivery West Texas Intermediate (WTI) crude oil closed at $77.10 per barrel, down 67 cents (0.86%) from the previous session. During the day, the OPEC Plus (OPEC+) group, consisting of OPEC and non-OPEC oil-producing countries, announced that the regular ministerial meeting originally scheduled for the 26th would be postponed to the 30th, causing intraday losses to exceed 5% at one point. This suggests that negotiations over whether to extend additional production cuts are not proceeding smoothly.

However, this decline in oil prices is somewhat easing concerns about inflation. Charlie Ripley, strategist at Allianz Investment Management, said, "As inflation continues to decline, the possibility of a Fed soft landing is increasing," adding, "In this environment, the stock market is likely to continue performing well next year."