Asset Market Trends and Key Issues - 240119

Asset Market Trends:

The New York Stock Exchange started with all three indices rising, as expectations for a soft landing of the economy strengthened amid the positive outlook from TSMC, which boosted the semiconductor industry. (Dow +0.51%, S&P500 +0.45%, Nasdaq +0.66%)

Bond yields remained on the rise as the market's expectations for a rate cut eased. The 10-year Treasury yield was strong at 4.14%. The 2-year Treasury yield rose to 4.38%. The dollar showed little movement and remained stable in a weak range.

International oil prices remained strong, supported by OPEC's positive outlook and increased demand from the U.S. Brent crude rose 1.16% to $79 per barrel. Gold rose 0.8% on the dollar's weakness. Copper rose slightly as concerns about the global economy eased.

Key Issues:

1. Semiconductor Strength: The semiconductor sector led the Nasdaq's rise, boosted by the strong fourth-quarter results and positive outlook from TSMC(TSM), the world's largest semiconductor manufacturer, due to artificial intelligence.

2. Temporary Budget Passed: The U.S. Congress failed to agree on the main budget for fiscal year 2024, but avoided a government shutdown by passing a two-month temporary budget. The House passed the budget bill following the Senate on the previous day (18th, local time).

3. Housing Market: Existing home sales announced, which can show the soundness of the U.S. housing market. Mortgage rates have fallen from their highest level in October, but concerns about demand persist, putting pressure on home prices.

Today's Featured Stocks and Focus Companies:

TSMC(TSM): TSMC forecasted that the semiconductor industry will overcome last year's inventory problems and macroeconomic difficulties, and that strong demand for 3nm and 5nm, as well as the artificial intelligence boom, will make 2024 a 'year of healthy growth'.