[New York Stock Market] AI and Semiconductor Rally Push Dow and S&P to Record Highs... Micron Up 10%

Investors Remain Calm Despite Maduro's Arrest
Buying Focused on Tech Stocks; Energy Shares Decline
All Eyes on Fed Rate Path Ahead of January 9 U.S. Jobs Report

All three major U.S. stock indexes closed higher on January 6 (local time). Despite the U.S. airstrike on Venezuela and the arrest of President Nicolas Maduro, the market remained steady, and investors turned to buying technology stocks. As a result, both the Dow Jones Industrial Average and the S&P 500 Index reached record highs. Investors are now shifting their focus from geopolitical surprises to the December jobs report, scheduled for release on January 9, which is seen as a key indicator for future interest rate trends.

Traders are working on the trading floor of the New York Stock Exchange (NYSE) in the United States on the 6th (local time). Photo by Reuters Yonhap News

On this day, the blue-chip-heavy Dow Jones Industrial Average closed at an all-time high of 49,462.08, up 484.9 points (0.99%) from the previous session. The large-cap-focused S&P 500 Index rose 42.77 points (0.62%) to a record high of 6,944.82. The technology-heavy Nasdaq Index finished up 151.351 points (0.65%) at 23,547.173.

By sector, artificial intelligence (AI)-related stocks led the market rally. Amazon rose 3.37%, and Micron surged 10.04%. Micron, which soared more than 240% last year alone, has continued its momentum with an additional gain of around 20% since the start of the year. Other AI-related stocks also showed solid performance, with Palantir up 3.26% and Oracle rising 0.6%.

In contrast, energy stocks, which had been strong the previous day on hopes for Venezuelan oil infrastructure development, turned weaker due to profit-taking. Chevron fell 4.46%, and ExxonMobil dropped 3.44%.

Ross Mayfield, investment strategist at Baird, commented, "While technology stocks lost some steam toward the end of the year, there is no doubt that AI is a 'game changer.' Semiconductor-related stocks are leading the upward trend." He added, "Not only technology stocks including AI, but also other cyclical stocks can perform well. With rate cuts, large-scale fiscal stimulus, and the growing excitement around AI converging, the economy is expected to heat up in 2026, and this is the kind of momentum we can anticipate."

Investors are paying more attention to U.S. macroeconomic indicators than to geopolitical variables. On January 9, the U.S. Department of Labor's Bureau of Labor Statistics (BLS) will release the December jobs report, which is considered a key indicator for the Federal Reserve's future interest rate path. The market expects nonfarm payrolls to have increased by 57,000 last month, a slower pace than the 64,000 jobs added in November. The unemployment rate is projected to fall by 0.1 percentage point from the previous month to 4.5%.

In this context, Thomas Barkin, President of the Federal Reserve Bank of Richmond, stated that the current policy rate is at a "neutral" level and that monetary policy is striking a delicate balance amid conflicting macroeconomic pressures of rising unemployment and still-high inflation. He emphasized a more cautious, data-driven approach to future rate decisions.

On the other hand, Fed Governor Stephen Miran, known as President Donald Trump's "economic adviser," argued on the same day that "the current policy is clearly restrictive and is holding back the economy." He highlighted the need for an aggressive rate cut of more than 1 percentage point within the year, revealing divergent views within the Fed.

Emilie Detard, asset strategist at Natixis, said, "We are waiting for the data," and noted, "Given that U.S. macroeconomic uncertainty may be greater than in other countries, this is an appropriate time to consider portfolio diversification ahead of the data releases."

Before the December jobs report, the U.S. Department of Labor's November Job Openings and Labor Turnover Survey (JOLTs) and the December jobs report from private labor market research firm ADP will be released on January 7. On January 8, weekly initial jobless claims will be announced.

International oil prices, which had risen by the mid-to-high 1% range the previous day on news of President Maduro's arrest, reversed course within a day and fell by around 2%. West Texas Intermediate (WTI) crude dropped $1.19 (2%) from the previous session to close at $57.13 per barrel, while Brent crude, the global oil price benchmark, ended down $1.06 (1.7%) at $60.7 per barrel.

After falling the previous day due to a preference for safe assets, U.S. Treasury yields moved sideways. The 10-year U.S. Treasury yield, a global bond benchmark, stood at 4.16%, while the 2-year yield, which is sensitive to monetary policy, remained at 3.45%, both little changed from the previous day.