The New York stock market saw a general rise as U.S. economic indicators showed positive trends, although the S&P 500 remained steady. A positive performance by Taiwanese semiconductor company TSMC contributed to the increase in semiconductor-related stocks, boosting investor sentiment.
On October 17 (local time), the Dow Jones Industrial Average climbed 161.35 points (+0.37%) to close at 43,239.05. The S&P 500 fell slightly by 1 point (-0.02%) to 5,841.47, while the tech-heavy Nasdaq Composite Index rose 6.53 points (+0.04%) to end at 18,373.61.
The retail sales data released on the day suggested that consumer spending, a critical pillar of the U.S. economy, remains strong. The U.S. Census Bureau reported that retail sales for September increased by 0.4% from the previous month to $714.4 billion. This was higher than the 0.3% increase predicted by Dow Jones analysts and represented a 1.7% rise year-over-year. The monthly retail sales figures mainly track sales of goods but also include services like dining out, providing insight into consumer trends in the U.S. economy.
Initial jobless claims for the week of October 6–12 decreased by 19,000 from the previous week to 241,000, falling short of the 260,000 forecasted by experts, thus avoiding market concerns over a deterioration in employment. Ellen Zentner from Morgan Stanley Asset Management stated that “Today’s economic figures indicate undeniable strength across the board,” suggesting that while this could deter the Federal Reserve from cutting rates in November, Chair Jerome Powell is unlikely to be swayed from his intention to proceed with a 0.25% rate cut.
With the data indicating ongoing strength in the U.S. economy, treasury yields increased. The yield on the 2-year Treasury note, which is highly sensitive to rate changes, rose by 5 basis points to 3.985%. The yield on the 10-year note increased by 8 basis points to 4.095%.
On the corporate front, TSMC, a major supplier to companies like Nvidia and Apple, reported strong earnings, driving its stock up by 9.79%. TSMC’s net income for the third quarter jumped 54% year-over-year to 325.3 billion Taiwanese dollars ($10.1 billion), exceeding market expectations of 300 billion Taiwanese dollars. Its earnings per share (EPS) listed on the U.S. stock exchange also surpassed expectations, reaching $1.94 compared to the forecast of $1.79.
Boosted by TSMC’s performance, AI and semiconductor-related stocks gained momentum. Nvidia rose 0.89%, and Dutch semiconductor equipment company ASML rose 2.5% after overcoming earnings hurdles, while Micron Technology and ARM gained 2.57% and 1.38%, respectively.
In the cryptocurrency sector, major digital assets stumbled. Bitcoin fell by 1.1% compared to 24 hours earlier, trading at $67,010, while Ether dropped 0.6% to $2,600.
Oil prices in New York rose for the first time in five days. The November delivery of West Texas Intermediate (WTI) crude oil rose by $0.28 (0.40%) to $70.67 per barrel on the New York Mercantile Exchange. The December delivery of Brent crude, a global benchmark, rose by $0.23 (0.31%) to $74.45 per barrel.