[U.S. Stocks] Gains extend amid chip rally and oil decline; SOXL surges 11.7%

[Financial News]  

New York stocks extended their gains on the 27th (local time). International oil prices fell amid hopes for negotiations with Iran, while semiconductor stocks rose for a second consecutive day, helping the market sustain its upward trend.
The Federal Reserve (Fed), which began its two-day Federal Open Market Committee (FOMC) meeting today, is expected to leave interest rates unchanged when the meeting concludes on the 28th. That expectation also acted as a tailwind for the market.
SOXL, a leveraged exchange-traded fund (ETF) that tracks three times the daily moves of 30 major semiconductor stocks, surged 11.7%.

The three major indexes continued to rise, with strength in technology stocks particularly pronounced.
The Dow Jones Industrial Average closed slightly higher, up 15.99 points (0.03%) from the previous session at 52,377.57. Some stocks performed strongly, including Goldman Sachs, up 2.07%, and Caterpillar, up 3.06%. But Boeing’s statement that it would be difficult to significantly increase 737 production before the second half of next year sent its shares plunging nearly 11%, restraining the gains.
By contrast, the technology-heavy S&P 500 and NASDAQ Composite posted larger gains. The S&P 500 rose 45.83 points (0.60%) to 7,722.60, while the NASDAQ climbed 308.43 points (1.18%) to 26,477.81.
The NASDAQ-100, made up of 100 large technology stocks, closed up 378.04 points (1.29%) at 29,651.44. TQQQ, a leveraged ETF that tracks three times the index’s daily moves, finished the session up $2.61 (3.81%) at $71.04.

Semiconductor stocks continued their upward trend.
Bellwether NVIDIA closed up $1.94 (0.90%) at $217.94, while AMD surged $28.98 (5.45%) to $560.26. NVIDIA and AMD announced today that they would invest $3 billion and $1 billion, respectively, in Meta Platforms.
Micron rose $25.06 (2.77%) to $928.76, while Intel surged $3.27 (3.61%) to close at $93.74.
SK hynix’s American depositary receipt (ADR) also finished trading up $2.74 (1.92%) at $145.36.
SOXL, which tracks three times the daily share-price moves of 30 major semiconductor stocks, soared $10.59 (11.70%) to $101.09.

With most big tech stocks advancing, Tesla, which jumped 5% the previous day, rose more than 4% today as well.
Tesla, which is set to report quarterly results after the market closes on the 28th, ended the session up $15.84 (4.04%) at $407.46. The stock has been rallying on expectations of improved results, as well as the possibility of a merger with SpaceX.
SpaceX closed up $1.68 (1.14%) at $148.58.
Alphabet rose $3.78 (1.19%) to $320.58, while Apple gained $3.19 (0.93%) to finish trading at $347.10.
Palantir, however, slipped $0.11 (0.06%) to $198.73, while Microsoft (MS) closed down $1.27 (0.24%) at $531.33.
Meta, which NVIDIA and AMD have pledged to make major investments in, fell $10.37 (1.64%) to $620.19.

Boeing plunged $20.13 (10.69%) to $168.18. Concerns about deteriorating results weighed on the stock.
Boeing’s third-quarter results, released today, included both negatives and positives. Its quarterly loss was larger than expected, but revenue topped market forecasts.
The concern was the outlook for production disruptions involving its flagship 737 MAX aircraft. Boeing said it could not substantially increase production before the second half of next year, adding that wing production was progressing more slowly than expected.
Boeing said it currently produces about 47 a month and expects to be able to produce 52 a month only in the second half of next year.

[email protected] Song Kyung-jae Reporter