[New York Stock Market Briefing] Rise Ahead of Trump's Second Term... Expectations Rise with News of Call with Xi Jinping

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

In the New York stock market, major indices closed higher ahead of the inauguration of U.S. President-elect Donald Trump. In addition to expectations for the next administration, supply and demand factors due to the expiration of options also pushed up the indices.

On the 17th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 334.70 points (0.78%) to 43,487.83, the Standard & Poor's (S&P) 500 index rose 59.32 points (1.00%) to 5,996.66, and the Nasdaq Composite Index surged 291.91 points (1.51%) to 19,630.20.

On a weekly basis, the Dow rose 4.69%, the S&P 500 rose 2.91%, and the Nasdaq rose 2.45%.

Expectations for Trump's second-term administration lifted the stock market. He will be inaugurated on the upcoming Martin Luther King Day, January 20. On this day, the New York stock market and bond market will be closed.

In particular, expectations grew with the news that President-elect Trump and Chinese President Xi Jinping had a phone call. President-elect Trump announced on his social media platform, Truth Social, that he had a conversation with President Xi, stating, "We discussed many topics, including trade balance, fentanyl, and TikTok."

Although President-elect Trump has repeatedly warned of imposing high trade tariffs targeting China, there is not much speculation that the relationship between the U.S. and China will be resolved with this call. However, the sentiment to have policy expectations spread positively in the stock market.

Among the giant tech companies, NVIDIA and Tesla stood out with a 3% increase. Microsoft and Alphabet also recorded a 1% increase.

In particular, Intel surged more than 9% as the possibility of an unknown company acquisition was raised.

By sector, all sectors except healthcare and real estate rose.

Consumer discretionary, technology, and communication services rose more than 1%.

According to the U.S. Federal Reserve, industrial production in December increased by 0.9% from the previous month, the largest increase since February last year. Manufacturing production, which accounts for about three-quarters of industrial production, increased by 0.6% from the previous month, far exceeding the expected increase of 0.2%.

The number of new housing starts in the U.S. also surged in December last year. According to the U.S. Department of Commerce, the number of new housing starts in December last year increased by 15.8% to an annual rate of 1.499 million units, seasonally adjusted, from 1.294 million units in the previous month.

According to the Chicago Mercantile Exchange (CME) FedWatch Tool, the probability of a rate freeze in the federal funds futures market in January rose to 99.5%.

The probability of a rate freeze by March also rose again from 66.5% at the close of the previous day to 71.6%.

The CBOE Volatility Index (VIX) recorded 15.97, down 0.63 points (3.80%) from the previous session.

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