Markets close slightly higher on last-minute buying... Intel surges 16% [NYSE Market Briefing]

The three major New York stock indices closed slightly higher. This was due to last-minute buying pressure in the absence of clear market-moving factors.

On the 19th (local time), the Dow Jones Industrial Average closed at 44,556.34 on the New York Stock Exchange (NYSE), up 10.26 points (0.02%) from the previous session. The Standard & Poor's (S&P) 500 index finished at 6,129.58, up 14.95 points (0.24%), while the tech-heavy Nasdaq Composite closed at 20,041.26, up 14.49 points (0.07%).

The S&P 500 index closed at an all-time high following late-session strength, its first record in 17 trading days.

However, there were no clear market-moving factors today. U.S. President Donald Trump's tariff policies, which had dominated the market for the past month, took a pause.

Chris Larkin, head of trading at E*TRADE, a Morgan Stanley subsidiary, said, "Overall, the market is trying to break free from the consolidated movement that began in early December last year," adding, "This week, as retail sector earnings reports begin, Washington-based tariff news could continue to be a market-moving factor."

U.S. retail sales for January fell 0.9% month-over-month, below expectations. However, analysis suggesting seasonal factors were at play prevented this from weighing on investor sentiment.

Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, said, "The market's sideways movement stems from investors' acceptance of the Trump administration's economic policy changes and recent corporate earnings," adding, "Investors seem to be taking a wait-and-see approach to Washington-based negative factors."

Key Federal Reserve officials continued to maintain hawkish stances. San Francisco Federal Reserve Bank President Mary Daly assessed that while U.S. inflation will eventually come down, it will be quite challenging, and global conditions are too uncertain to discuss rate cuts this year.

Daly stated, "While monetary policy is already restrictive, we need to maintain this restrictive stance until we consistently see progress on inflation."

By sector, communication services fell more than 1%, while healthcare and consumer discretionary also declined. Energy and materials, on the other hand, rose more than 1%.

The 'Magnificent Seven' major tech companies mostly showed weakness around flat levels before some stocks turned stronger at the close.

Apple, Amazon, Tesla, and Alphabet finished slightly lower, while Nvidia and Microsoft closed slightly higher.

Meta fell more than 2%, ending its 20-day winning streak. However, this set a record for the longest streak among Nasdaq 100 companies.

Intel surged more than 16% today. This reflected expectations for structural improvement following news that Broadcom and TSMC could partially acquire portions of Intel.

Dell Technologies, a computer manufacturer transformed into an AI server company, jumped more than 5%, still benefiting from news that it would supply $5 billion worth of servers to xAI, an artificial intelligence startup owned by Tesla CEO Elon Musk.

Server manufacturer Super Micro Computer (SMCI) continued its strong performance, surging more than 16% today. SMCI's stock has gained momentum since announcing long-term revenue guidance that far exceeded market expectations last week.

Sportswear manufacturer Nike saw its stock jump more than 6% on news that it would launch new women's products in collaboration with celebrity Kim Kardashian.

Manufacturing conditions in New York State, overseen by the NY Fed, exceeded expectations.

The February Empire State Manufacturing Index was recorded at 5.7, up 18.3 points from the previous month. This was the highest since November last year and exceeded market expectations.

U.S. homebuilder sentiment significantly weakened. The National Association of Home Builders (NAHB) announced that the Housing Market Index (HMI) for February recorded 42, down 5 points from the previous month, marking a 5-month low.

According to the CME FedWatch Tool, the probability of interest rates remaining unchanged next month is reflected at 97.5%. The probability of rates remaining unchanged through June has also risen to 55.4% due to Fed officials' hawkish comments. It was 49.6% at the end of the previous trading day.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) recorded 15.39, up 0.02 points (0.13%) from the previous session.

JSK@hankyung.com