Dow gains 1.02% on earnings and lower oil as Nasdaq ends slightly down on AI worries
In short
US stocks ended mostly higher on 20 October (local time). The Dow Jones Industrial Average rose 529.85 points, or 1.02%, to 52,495.88, and the S&P 500 gained 0.28%, while the Nasdaq Composite slipped 0.02%. Outlets cited strong corporate earnings and lower oil prices, with continued worries about AI investment weighing on tech shares.
Read the full story 2 min read
US stocks ended mostly higher on 20 October (local time), Korean outlets reported. The Dow Jones Industrial Average rose 529.85 points, or 1.02%, to 52,495.88. The S&P 500 gained 21.84 points, or 0.28%, to 7,712.57. The tech-heavy Nasdaq Composite was the only main index to fall, down 6.07 points, or 0.02%, to 26,424.82. Asia Economy gave slightly different Nasdaq figures, a fall of 6.06 points to 26,424.81. [ 1 , 2 , 3 , 4 , 6 ]
Yonhap said investor sentiment improved as companies reported earnings above market expectations. Credit information company Equifax rose 11.3% after reporting quarterly net profit above expectations, and toy maker Hasbro rose 11.2%. Industrial products maker 3M rose more than 5% on strong results and a raised annual profit forecast. Chosun Ilbo said 3M led the Dow higher and that defence company Northrop Grumman rose more than 4% on earnings above expectations. [ 1 , 2 , 3 , 6 ]
Lower oil prices also helped. Brent crude, which had come close to $112 a barrel during the session on Middle East instability, fell back below $109. Chosun Ilbo and Asia Economy reported that Brent futures closed at $108.79 a barrel, and WTI at $101.79, down about 1.8%. Chosun Ilbo also said US Treasury yields fell. Asia Economy gave the 10-year yield as 5.115%, down 2.1 basis points, and the 30-year as 5.426%, while the 2-year rose 2.4 basis points to 4.785%. [ 1 , 2 , 3 ]
The Nasdaq was held back by continued worries about AI investment. Chosun Ilbo said the concern is whether companies borrowing heavily for data centres and chips can secure enough demand and profit. Both Chosun Ilbo and Asia Economy said the first-day fall of Korean AI company Ellis (엘리스) weighed on tech sentiment early in the session. Chosun Ilbo said it dropped more than 30%, and Asia Economy said it closed 32% below its offer price. Some AI-related stocks later recovered, with Western Digital up more than 3% and Seagate up more than 2%. [ 2 , 3 ]
Seoul Shinmun, in an article written with generative AI, said defensive, healthcare and financial stocks supported the market while large tech and some chip stocks lagged. Eli Lilly rose 3.49%, UnitedHealth 3.04% and Merck 3.25%. Apple fell 1.00%, Meta 1.59% and Nvidia 0.29%. The Philadelphia Semiconductor Index fell 0.29%, and the VIX fell 6.13% to 17.31. [ 4 , 6 ]
Korea Economic Daily said hopes of easing in the Middle East also supported the market. Citing Middle Eastern media, it said Iranian President Masoud Pezeshkian met Pakistan's army chief Asim Munir in Tehran to discuss mediation, and that Qatar and Pakistan had reportedly offered the US and Iran a new peace proposal. It said the details and whether either side accepted were not confirmed. [ 6 ]
Chosun Ilbo and Asia Economy quoted CNBC's interview with Jake Behan (제이크 비핸), a head of capital markets. He said the market had seen AI-centred growth prospects as strong enough to justify high interest rates, but that relationship began to be tested last week. Asia Economy added that the coming earnings reports from large cloud companies would be the next test for AI investment. [ 2 , 3 ]
Why it matters
The Korean outlets tie the session to company earnings, oil prices and doubts over AI spending. Several say investors are now watching earnings from large cloud companies in the coming weeks for signs of returns on AI investment.
Key facts
- On 20 October (local time) the Dow rose 529.85 points (1.02%) to 52,495.88 and the S&P 500 rose 21.84 points (0.28%) to 7,712.57. [ 1 , 2 , 3 , 4 , 6 ]
- The Nasdaq Composite fell 6.07 points (0.02%) to 26,424.82, the only one of the three main indexes to close lower. [ 1 , 2 , 4 , 6 ]
- Equifax rose 11.3% and Hasbro 11.2% after earnings; 3M rose more than 5% after results and a raised annual profit forecast. [ 1 , 2 , 6 ]
- Brent crude, which had come close to $112 a barrel during the session, closed at $108.79, down about 0.7%; WTI closed at $101.79, down about 1.8%. [ 2 , 3 ]
- Ellis (엘리스), a Korean AI company, fell more than 30% on its first trading day, which outlets said weighed on tech sentiment early in the session. [ 2 , 3 ]
- Healthcare shares led gains, while Apple fell 1.00% and Meta fell 1.59%. [ 4 , 6 ]
Confirmed by several sources
- The Dow and S&P 500 closed higher and the Nasdaq Composite closed slightly lower on 20 October (local time), with the Dow up 529.85 points to 52,495.88. [ 1 , 2 , 3 , 4 , 6 ]
- Better-than-expected earnings from companies including Equifax, Hasbro and 3M supported the market. [ 1 , 2 , 3 , 6 ]
- Brent crude fell back from near $112 a barrel during the session to below $109 at the close. [ 1 , 2 , 3 , 6 ]
- Ellis's weak first trading day in Korea added to AI-related selling pressure early in the US session. [ 2 , 3 ]
Still unclear
- Whether the Dow closed at a record high. Only the headline of one outlet, an article written with generative AI, says the Dow set a record; the other documents do not say so.
- The content of a reported new Qatar and Pakistan peace mediation proposal to the US and Iran, and whether either side accepted it. Korea Economic Daily cited Middle Eastern media reports and said the details and the two countries' response were not confirmed.
- The exact size of Ellis's first-day fall. Chosun Ilbo said more than 30%, while Asia Economy said it closed 32% below the offer price.
- The exact Nasdaq Composite close. Asia Economy gave a fall of 6.06 points to 26,424.81, while the other outlets gave 6.07 points to 26,424.82.
What local media are saying
Timeline, local time
- Yonhap published its report on the 20 October close, with the Dow up 1.02%. [ 1 ]
- Chosun Ilbo published its report noting the Nasdaq closed slightly lower on AI worries. [ 2 ]
- Asia Economy published its report with Treasury yield and gold figures. [ 3 ]
- Seoul Shinmun and a Yonhap follow-up were published. [ 4 , 5 ]
- Korea Economic Daily published its market briefing, including the Middle East mediation reports. [ 6 ]