[New York Stock Market] All Three Major Indexes Rebound... Bargain Hunting Flows Into Tech Stocks

Buying the Dip in Tech Stocks
Oracle Jumps More Than 9%
Nvidia and Broadcom Gain Around 3%
WTI Ends Up 1.27%

New York Stock Exchange

All three major indexes on the New York Stock Exchange rebounded on the 9th (local time) and finished higher. Buying interest concentrated in technology stocks pulled the indexes up. The Dow Jones Industrial Average once again hit a record high.

On the New York stock market that day, the blue-chip-heavy Dow Jones Industrial Average closed at 50,135.87, up 20.20 points (+0.04%) from the previous trading day. The large-cap-focused S&P 500 Index finished at 6,964.82, up 32.52 points (+0.47%), while the tech-heavy Nasdaq Composite Index ended at 23,238.67, up 270.457 points (+0.90%).

The three major indexes all opened lower but were lifted as buying flowed into technology stocks. U.S. semiconductor manufacturers Nvidia and Broadcom rose 2.5% and 3.31%, respectively. Artificial intelligence (AI) company Oracle surged 9.64% on optimism surrounding OpenAI. It recorded the largest gain among major technology stocks.

Sam Stovall, an analyst at CFRA Research, said, "The price-to-earnings ratio of technology stocks has fallen to 8% from 17% above the five-year average," but added, "This earnings multiple is still at a very good level, so investors should not walk away from tech stocks yet."

Although the market successfully rebounded after a correction triggered early last week by selling in AI-related stocks, some observers characterize the move as a "technical rebound." Alphabet, Google's parent company, announced a large-scale bond issuance, and as big tech (large information technology companies) continue to unveil bond issuance plans, investors are expected to focus even more on earnings and cash flow.

Against this backdrop, attention is also focused on the U.S. Bureau of Labor Statistics (BLS) January employment report to be released on the 11th. The market expects nonfarm payrolls in January to increase by 70,000, with the unemployment rate holding at 4.4%. If the unemployment rate comes in higher than forecast, concerns about the labor market could materialize.

Meanwhile, on the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for March delivery settled at 64.36 dollars per barrel, up 0.81 dollars (1.27%) from the previous session. Geopolitical jitters were priced into oil after the U.S. government urged U.S.-flagged vessels sailing near Iran in the Strait of Hormuz to exercise caution.