New York Stock Market Mixed Amid 'Pause'... Semiconductor Stocks Decline

Partial profit-taking after the previous day's "Trump rally"
Skepticism over AI demand surge despite SK Hynix's record earnings
Unemployment claims reach 223,000 last week, exceeding expectations

The three major indices of the U.S. New York stock market showed mixed movements within a narrow range on the 23rd (local time). After the previous day's 'Trump rally' driven by expectations of AI investment and regulatory easing, the market appeared to take a breather as investors engaged in some profit-taking. Semiconductor stocks also showed weakness, preventing the indices from rising.

EPA Yonhap News

As of 11:02 a.m. in the New York stock market that day, the Dow Jones Industrial Average (Dow), centered on blue-chip stocks, was trading at 44,355.27, up 0.45% from the previous day. The S&P 500, focused on large-cap stocks, rose 0.12% to 6,093.91, while the Nasdaq, centered on tech stocks, fell 0.23% to 19,963.4.

By individual stocks, semiconductor shares were weak. Nvidia fell 0.72%, and AMD dropped 0.37%. Dutch semiconductor equipment maker ASML was down 3.04%. Although SK Hynix posted record-high earnings, it failed to meet the market's expectations to confirm the surge in AI demand, leading to a decline in semiconductor stocks. There are also concerns that the U.S. government may impose additional export controls on ASML, which is acting as a negative factor.

Matthew Maley, Chief Strategist at Miller Tabak, said, "The stock market is showing signs that it may need to take a breather for a normal and healthy pause," adding, "However, the SK Hynix news could cause some issues for the ongoing bullish sentiment surrounding AI. This would be the case if other semiconductor companies repeat their guidance (earnings outlooks)."

The New York stock market rose across the board the previous day. Investor sentiment was driven by optimistic views on economic growth, pro-business policies expected in Trump's second term such as large-scale private sector AI infrastructure investments announced shortly after President Donald Trump’s inauguration, corporate tax cuts, and deregulation. The fact that President Trump did not impose new tariffs on his first day in office also contributed to the inflow of buying.

Sam Stovall, Chief Investment Strategist at CFRA Research, said, "I am not surprised by some profit-taking today," and predicted, "The market will begin to break through all-time highs based on closing prices in the short term."

Claims for unemployment benefits, which reflect labor market trends, slightly increased last week but remain robust. The U.S. Department of Labor reported that initial unemployment claims for the week of January 12?18 totaled 223,000, an increase of 6,000 from the revised figure of 217,000 the previous week. This exceeded experts' expectations of 221,000 by 2,000. Continuing claims, which count those claiming unemployment benefits for at least two weeks, reached 1,899,000 for the week of January 5?11, marking the highest level in 3 years and 2 months.

The U.S. Federal Reserve (Fed) has indicated it will slow the pace of monetary easing due to concerns over robust growth and a rebound in inflation. The Fed will hold its first Federal Open Market Committee (FOMC) meeting since President Trump's inauguration on January 28?29, after which it will decide on the benchmark interest rate.

Government bond yields are on the rise. The yield on the 10-year U.S. Treasury note, a global bond yield benchmark, rose 4 basis points (1bp = 0.01 percentage points) from the previous trading day to 4.64%. The yield on the 2-year U.S. Treasury note, sensitive to monetary policy, remained steady at 4.3%.

International oil prices were steady. West Texas Intermediate (WTI) crude oil rose $0.20 (0.27%) from the previous day to $75.64 per barrel, while Brent crude, the global oil price benchmark, increased $0.27 (0.34%) to $79.27 per barrel.