The three major indexes on the New York stock market ended mixed.
On the 7th (U.S. Eastern time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 46,987.10, up 74.80 points (0.16%) from the previous session. The Standard & Poor's (S&P) 500 rose 8.48 points (0.13%) to 6,728.80, while the Nasdaq composite fell 49.46 points (0.21%) to 23,004.54 at the end of the transaction.
New York stocks were highly volatile again that day. In early trading, there was heavy selling centered on artificial intelligence (AI) and semiconductor-related stocks. The fallout continued after an OpenAI executive mentioned a plan for the government to guarantee infrastructure investment facilities and AI chip purchase expenses. After the remark, questions were raised about OpenAI's cash flow, prompting OpenAI Chief Executive Officer (CEO) Sam Altman to say directly, "We do not want (government guarantees)."
The Philadelphia Semiconductor Index, composed of AI and semiconductor-related stocks, fell as much as 4.70% intraday. Nvidia, the star of the AI industry, dropped as much as -4.88%, and Broadcom fell as much as -5.15%. The tech-heavy Nasdaq also fell as much as -2.13% intraday, and excluding Apple, all giant technology corporations with a market capitalization of $1 trillion (about 1,457.9 trillion won) or more were in decline.
Weakening consumer sentiment also dragged down the indexes. According to the University of Michigan, the preliminary consumer sentiment index for November was 50.3. That is down 3.3 points from October's 53.6 and the lowest since 50.0 in June 2022.
However, in the afternoon, reports that the Democratic Party proposed a stopgap budget compromise to the Republican Party began to narrow the losses, and eventually the S&P 500 and the Dow turned higher.
By sector, communication services and technology were weak. Consumer staples, real estate, utilities, materials, and energy rose more than 1%. While tech stocks were under downward pressure, blue chips and industrials propped up the market. Coca-Cola rose more than 2%, and Chevron and others gained more than 1%. Nvidia, which had been down more than 5%, finished slightly higher, and Amazon and Meta also rose.