US market update : NASDAQ 100 Jumps over 300 points led by chip stocks, SK Hynix launches $28.1 billion ADS issue

The US stock market opened in green across the board, with renewed optimism around the chip stocks. The tech-heavy NASDAQ 100 index rose over 300 points or 1% on Monday as strong sales update by Samsung and drawing rights listing of SK Hynix boosted the investor sentiment around tech stocks.

Meanwhile the Dow Jones opened at record high levels as investors bets increased on less tightened policy stance after NFP data came in less than expected in the last week. The Dow Jones and the S&P 500 added nearly 2% in the holiday shortened last week.

Investors will also closely watch out for Federal Reserve’s policy minutes of the meeting, to be released on Wednesday. The current macroeconomic prints suggest for a status-quo in the policy stance labor data shows resilience with slight pain in certain areas.

At the stock specific level, shares of chip makers like AMD (+6.6%), Qualcom (+5.7%),Broadcom Inc (+5.5%), Intel (+4.4%) and Micron (+2.8%) were amongst the top gainers from the chip making peers. Meanwhile NVIDIA shares traded 0.3% higher on Monday.

The chip stocks maintained the bullish momentum after reuters report suggested that Samsung Electronics will report 18-fold jump in the profit from a year earlier. The profit will be exceed cumulative earnings of 40 years, underscoring the robust demand for its HBM and the traditional DRAM chips.

Meanwhile, the Korean chip making giant, SK Hynix launched an initial public offering of 177.9 million depository shares in the US to raise $28.1 billion, taking a next step towards its global market debut. The ADS, (American Depository Shares) received strong interes from institutional investors as global funds expressed interest to purchase $7 billion worth of depository shares at the issue price.

Despite the buoyancy, the Asian markets ended mixed on Monday as investors cautiously awaited the corporate earnings season to unfold amid concerns over high valuations in AI-linked companies.