[New York Stock Exchange Briefing] Tech Stocks Overcome Rising Rates and Sluggish Consumption... 'Santa Rally' Expectations ↑

On the 5th (local time), Gary Gensler, SEC Commissioner, is broadcasting before ringing the 'Opening Bell' at the New York Stock Exchange./New York=Kim Beom-jun Reporter

Major indices on the New York Stock Exchange closed higher amid the strength of the semiconductor sector. Although they showed weakness during the day due to rising U.S. Treasury yields and sluggish consumption indicators, they eventually closed higher, continuing the expectations for a 'Santa Rally.'

On the 23rd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 66.69 points (0.16%) to 42,906.95, the Standard & Poor's (S&P) 500 Index rose 43.22 points (0.73%) to 5,974.07, and the Nasdaq Composite Index rose 192.29 points (0.98%) to 19,764.88.

In the early session, all three major indices showed weakness. This was due to the rise in the U.S. 10-year Treasury yield to 4.59% and the Conference Board's December U.S. Consumer Confidence Index falling significantly below expectations at 104.7 (expected 112.9). The Consumer Confidence Index recorded 112.8 in the previous month. The simultaneous release of indicators showing rising rates and weakened consumer sentiment dampened investor sentiment.

However, tech stocks were strong. Six of the 'Magnificent 7' tech giants, excluding Microsoft, rose. In particular, NVIDIA rose 3.69% on news that Bank of America (BoA) selected it as a top pick for next year and that it would establish a corporation in Taiwan.

The news of NVIDIA establishing a corporation in Taiwan also boosted TSMC's stock by 5.16%.

Broadcom, which has emerged as a 'NVIDIA rival,' surged 5.52%. AMD also rose 4.52% amid Rosenblatt's forecast of increased market share in the central processing unit (CPU) and graphics processing unit (GPU) markets.

Qualcomm rose 3.5% on news that it gained an advantage in its lawsuit with ARM, while ARM fell about 4%.

The stock of Honda, listed on the New York Stock Exchange, surged 12.72%. This was due to the formalization of its merger with Nissan, approved by both companies' boards.

Eli Lilly, a major pharmaceutical company, saw its stock rise 3.71% on news that the U.S. Food and Drug Administration (FDA) approved its obesity treatment, ZepBound, as a treatment for sleep apnea in obese adults.

MicroStrategy, known for holding the most Bitcoin, plummeted 8.78% due to the decline in Bitcoin prices.

By sector, 8 of the 11 sectors comprising the S&P 500 rose, including Consumer Discretionary (0.42%), Energy (0.61%), Financials (0.29%), Healthcare (1.04%), Real Estate (0.49%), Technology (1.26%), Communication Services (1.35%), and Utilities (0.39%), while 3 sectors fell, including Consumer Staples (0.57%), Industrials (0.04%), and Materials (0.12%).

According to the FedWatch tool of the Chicago Mercantile Exchange Group (CME Group), as of 3:40 PM New York time, 20 minutes before the market closed, the probability of the Federal Reserve cutting rates by 25 basis points in January next year was 8.6%, and the probability of holding rates steady was 91.4%.

The Volatility Index (VIX), compiled by the Chicago Board Options Exchange (Cboe), was 16.78, down 1.58 points (8.61%) from the previous session.

The New York Stock Exchange will close early at 1 PM on the 24th for Christmas Eve and will be closed on Christmas Day, the 25th.

Han Kyung-woo, Hankyung.com Reporter case@hankyung.com