The three major stock indices in New York closed higher after strong volatility.
After the U.S. Federal Open Market Committee (FOMC) froze interest rates, Jerome Powell, chair of the Federal Reserve, noted that it was uncertain whether there would be an interest rate cut this year. This momentarily weakened investor sentiment, but the market rebounded late in the session on news of the Trump administration's elimination of regulations on artificial intelligence (AI) chips.
On the 7th (U.S. Eastern Time), the Dow Jones Industrial Average closed up 284.97 points (0.70%) at 41,113.97 on the New York Stock Exchange. The Standard and Poor's (S&P) 500 index rose 24.37 points (0.43%) to 5,631.28, while the tech-heavy Nasdaq composite closed up 48.50 points (0.27%) at 17,738.16.
By sector, all sectors rose except for materials, real estate, and communication services. Consumer discretionary increased by more than 1%.
On the news of the elimination of AI chip regulations, the Philadelphia Semiconductor Index rose 1.74%, and Nvidia, Broadcom, ASML, and Qualcomm all saw increases around 3%.
Among major tech corporations, Amazon and Meta Platforms rose around 2%, and Microsoft remained stable.
On the other hand, Apple fell by more than 1%, and Alphabet, Google's parent company, plummeted by over 7%. It appears that comments made by Eddy Cue, chief of services at Apple, in a lawsuit filed by the U.S. Department of Justice against Alphabet, stating "the artificial intelligence (AI) search engine will eventually replace the standard search engine," negatively impacted the stock price.
The earnings reports of corporations also influenced stock prices.
Walt Disney recorded a strong performance that exceeded market expectations, causing the stock price to surge by over 10%.
Uber saw its stock price decline by more than 2% due to revenues in the first quarter falling short of market expectations, with the drop at one point reaching 6.65%.