[New York Stock Market Close] Despite Warmth in AI Semiconductors, SK Hynix and SpaceX Experience Profit Taking and Weakness

[Mexico City = Shim Young-jae, Correspondent] The New York stock market closed higher across major indices, supported by strong performance from big tech companies and expectations for artificial intelligence (AI) investments, despite the burden of soaring long-term Treasury yields. In particular, Amazon led the market's rise with a 15% surge following strong results driven by its cloud business, while Microsoft continued to build on its AI momentum, expanding buying interest in tech stocks.

According to CNBC, on the 31st (local time), the Dow Jones Industrial Average closed at 52,485.00, up 276.97 points (0.53%) from the previous session. The Nasdaq Composite Index recorded a rise of 251.68 points (1.00%) to 25,373.90, and the S&P 500 Index finished up 52.09 points (0.70%) at 7,489.72. In contrast, the Russell 2000 Index, which focuses on small and mid-cap stocks, fell by 1.35 points (0.46%) to 291.24, showing weakness.

Rising Treasury Yields Fail to Dampen AI Performance

The market started with the burden of rising long-term Treasury yields.

The yield on 30-year U.S. Treasury bonds soared to 5.26%, the highest level since 2007, while the yield on 10-year bonds also exceeded 4.7% during the day, marking the highest level since January of last year.

Market analysts noted that although Federal Reserve Chairman Kevin Warsh reiterated his commitment to curbing inflation, his comment that "there is no magic solution" weakened some confidence in the Fed's price response, leading to upward pressure on Treasury yields.

Terry Sandven, Chief Equity Strategist at U.S. Bancorp Asset Management, diagnosed in an interview with CNBC that "if the yield on 10-year Treasury bonds approaches 5%, it could burden investor sentiment and stock valuations."

He assessed that "the current market is a rollercoaster where anxiety and opportunity coexist," adding that "strong corporate earnings and stable price trends are positive, but geopolitical risks in the Middle East and rising oil prices remain inflationary risk factors."

Amazon Soars 15%... Apple Drops Over 9%

Despite the interest rate burden, the market maintained its upward trend due to strong performances from big tech companies.

After announcing second-quarter results that exceeded market expectations, Amazon's stock surged 15%. The robust growth of its AWS cloud business reinforced expectations for increased investment in AI infrastructure.

Microsoft, which had soared 16% the previous day following its earnings announcement, continued its strong performance with an additional rise of about 2.5% on this day. The stock reached $463.12 during the day and is expected to record its highest monthly increase since October 2007, rising over 20% in July.

In contrast, Apple reported quarterly revenues that exceeded market expectations and a 22% increase in iPhone sales year-on-year, but its stock fell by more than 9% due to disappointing service segment revenues.

Semiconductor Stocks Strong... SK Hynix ADR Falls Over 3%

Expectations for increased AI investment also extended to the semiconductor sector.

The iShares Semiconductor ETF (SOXX) rose by over 1%, led by gains in AMD and Micron. Following an 8.5% surge the previous day, which marked the best daily increase since April 2025, semiconductor investment sentiment remained strong.

However, SK Hynix ADR experienced significant volatility during the day, ultimately closing sharply lower.

The stock opened at $159.88, rose to $162.65 early in the session, but then plummeted as profit-taking intensified. It closed at $143.68, down $5.32 (3.57%) from the previous day, and fell an additional $0.18 (0.13%) in after-hours trading to $143.55.

The intraday low was recorded at $144.65, with a daily trading range of $144.65 to $162.65.

Market analysts interpreted that while expectations for improved memory market conditions remain, profit-taking following recent surges and weakened semiconductor investment sentiment due to Apple's service segment underperformance had some impact.

Weekly Gains Despite July's Tech Stock Correction

This week, the New York stock market exhibited extreme volatility.

At the beginning of the week, concerns over tariffs and interest rates caused the Dow to plummet over 1,100 points in a single day, marking its largest drop since April of last year, but the AI results from Microsoft and Amazon lifted the market again.

On a weekly basis, the Dow and S&P 500 indices rose by approximately 0.9% each, while the Nasdaq Composite Index increased by about 1.2%, closing the week with all major indices in the green. However, on a monthly basis, while the Dow saw a slight increase, both the S&P 500 and Nasdaq Composite indices declined.

In particular, the Nasdaq 100 index fell about 7% in July, marking its largest monthly drop since March of last year. Analysts attributed this to a combination of geopolitical tensions surrounding Iran, rising oil prices, a hawkish Fed stance, corrections in the semiconductor sector, and high valuation pressures on AI investments.

Recently listed SpaceX saw its stock price drop over 36% in the past month. From a peak of $225.64 last month, it fell to $113.50 last week, resulting in a market capitalization decrease of over $1.2 trillion. On this day, the stock also continued its downward trend, falling over 3.5%.