S&P 500 up 0.28%, Nasdaq gains 0.27%, Philadelphia Semiconductor Index rises 1.75%
SK hynix U.S.-listed shares surge 13.30%, Oracle jumps 10.73%; Alphabet and Fortinet plummet in extended trading
U.S. stocks finished slightly higher on Monday (local time). The three major indices advanced between 0.19% and 0.28%, led by notable gains in memory and semiconductor equipment stocks. As the Federal Reserve maintained benchmark interest rates, large-cap tech shares and sector-specific performances showed mixed results.
The Dow Jones Industrial Average closed up 97.53 points, or 0.19%, at 52,475.10. The S&P 500 added 21.38 points, or 0.28%, to finish at 7,743.98, while the tech-heavy Nasdaq Composite rose 72.04 points, or 0.27%, to 26,549.85. All three major benchmarks extended their winning streaks to three consecutive sessions.
At the conclusion of its Federal Open Market Committee (FOMC) meeting, the Fed kept its benchmark interest rate target range steady at 3.75% to 4.00%. The vote was 10-2, with Governors Lisa Cook and Cleveland Fed President Beth Hammack dissenting in favor of a 25-basis-point hike. In its statement, the central bank noted that economic activity has continued to expand at a solid pace, though inflation remains elevated.
Gains in the semiconductor sector outpaced the broader market. The Philadelphia Semiconductor Index advanced 201.50 points, or 1.75%, to close at 11,684.00. Micron Technology rallied 5.86%, while Advanced Micro Devices (AMD) and Broadcom gained 3.24% and 2.77%, respectively. Chip equipment makers Lam Research and Applied Materials also advanced 5.39% and 5.07%. Conversely, NVIDIA fell 1.17%.
American Depositary Receipts (ADRs) of SK hynix traded in the U.S. soared 13.30% to close at $164.70. During its earnings presentation, the company highlighted growing sales of artificial intelligence (AI) memory and server products, projecting that demand will outstrip supply through 2030. It cited the technical complexity of advanced manufacturing processes and the lead times required for new production facilities as key constraints on supply growth.
Storage-related equities also showed strength. SanDisk climbed 7.66%, Seagate Technology rose 4.51%, and Western Digital advanced 4.08%.
Among individual movers, Oracle stood out with a 10.73% surge. During its Investor Day event, the company set a target to grow fiscal 2030 revenue to at least $225 billion. It also outlined plans for free cash flow to turn positive in the second half of fiscal 2028 and reach a minimum of $30 billion by fiscal 2029.
In the financial sector, major banks and brokerages advanced. JPMorgan Chase rose 1.05%, Wells Fargo gained 1.22%, and Citigroup moved up 1.16%. Goldman Sachs and Morgan Stanley increased 1.47% and 1.72%, respectively. On the other hand, select consumer discretionary and utility names lagged. Walmart and Costco declined 0.46% and 0.95%, while NextEra Energy and Duke Energy fell 1.70% and 0.99%.
Performance across mega-cap technology stocks was mixed. Alphabet Class A shares and Amazon rose 1.34% and 0.59%, respectively, while Apple dropped 0.94%, Meta Platforms lost 1.24%, and Tesla fell 0.80%. Microsoft edged down 0.06%. In software, ServiceNow fell 3.00% and Fortinet dropped 5.90%, contrasting with Oracle's rally.
Following the closing bell, Microsoft, Alphabet, and Fortinet reported earnings. Microsoft announced that fiscal first-quarter revenue rose 19% year-over-year to $92.3 billion, driven by a 48% increase in Azure revenue. Alphabet reported core search revenue that missed market expectations alongside a quarterly negative free cash flow of $9.065 billion.
Fortinet raised its full-year overall revenue outlook but trimmed its service revenue forecast, adjusting its expected range for annual service revenue to $5.15 billion–$5.17 billion from the previous $5.18 billion–$5.22 billion.
After-hours reactions to the earnings reports were divergent. Microsoft shares rose as much as 4% in extended trading. As of 6:00 a.m. KST (5:00 p.m. ET Monday), Alphabet shares were down 8.6% and Fortinet shares had tumbled 25.6% relative to their regular session closes.
The market's focus now shifts to upcoming U.S. growth and inflation data. The U.S. Bureau of Economic Analysis (BEA) is scheduled to release advance estimates for third-quarter gross domestic product (GDP) and September personal income and outlays data at 9:30 p.m. KST. The accompanying Personal Consumption Expenditures (PCE) price index will provide further clarity for assessing the future path of monetary policy following the latest rate hold.
