U.S. stocks rise on liquidity supply possibilities

11/11 U.S. stocks rise on liquidity supply possibilities

The U.S. stock market rose as the liquidity supply issue was highlighted by Trump’s remarks on the payment of $2,000 per American amid expectations for the end of the U.S. shutdown. In particular, individual companies were sluggish due to economic instability, but buying was concentrated on semiconductors and large technology stocks with high expectations for improved profits, driving the index’s rise. However, although the volatility expanded during the day, the index continued to rise due to the supply and demand for momentum stocks (Dow +0.81%; Nasdaq +2.27%, S&P 500 +1.54%; Russell 2000 +0.94%, Philadelphia Semiconductor Index +3.02%)

*Variables: Liquidity, AI, and Psychology

Treasury Secretary Bessent mentioned that Trump could pay at least $2,000 in “tariff dividends” per person to Americans except for the high-income bracket. However, he argued that this could be realized through tax incentives for overtime and tips, not cash payments. The market is driving the strength of momentum stocks, with the assessment that such liquidity supply could eventually drive strength in the asset market. However, this is one of the factors that increase interest rates on government bonds, considering that it is a factor in inflation.

In the meantime, over the weekend, Jensen Huang, CEO of NVIDIA (+5.79%) argued that the demand for Blackwell chips is very strong. In addition, the rapid growth of the AI industry is expected to cause a shortage of memory. As it was, the market is driving the strength of semiconductor companies by interpreting the recent AI bubble controversy as easing. The explosive growth in capital expenditure, such as UBS raising its AI capital expenditure outlook to $423 billion and $571 billion, respectively, from $375 billion in 2025 and $500 billion in 2026

Meanwhile, TSMC (+3.06%) recorded the smallest increase since February 2024, with sales of only 16.9% year-on-year in October. Some in the market interpreted it as a full-fledged slowdown in the AI industry, but the impact was limited due to the seasonality and the monthly figure. Rather, it pays more attention to the fact that the TSMC chairman is referring to the shortage of supply, which continues to grow. If investor sentiment was unstable, the announcement could have increased volatility, but based on solid investment sentiment, it was still accepted as a favorable factor, and related companies continued to rise

*Featured Stocks: Nvidia, Palantir, Tesla, Alphabet, Eli Lilly Bullish

Semiconductors: Nvidia Surges as Positively Sensitive Seeks Focus
Nvidia (+5.79%) continued its previous remarks, with CEO Jensen Huang claiming that the demand for Blackwell chips is very strong, but the market surged due to the assessment that it eased the AI bubble controversy. On top of that, despite the news of TSMC (+3.06%) slowing sales in October, the market is still focused on claiming that the AI industry is hot. Micron (+6.46%) rose after Jensen Huang mentioned that memory and others are facing supply shortages due to the development of the AI industry. Related content was a factor in the surge of Samsung Electronics, SK Hynix, and Micron over the past two months, but it continued to strengthen today due to Jensen Huang’s remarks. The Philadelphia Semiconductor Index rose 3.02%

Semiconductors, AI: AMD Strong Ahead of Investor Day
AMD (+4.47 percent) rose as it reflected expectations that its AI outlook could come out ahead of Investor Day on the 11th. Most stocks, including Broadcom (+2.56 percent) and Ram Research (+4.41 percent), were strong. However, Intel (+0.84%) and Qualcomm (+0.40%) returned the gains, but there were no special factors, and it is estimated that it was due to supply and demand. Western Digital (+6.91%), Seagate (+5.24%) and SanDisk (+11.89%) are also strong due to expectations of supply shortage. Dell (-2.73%) fell as BWG Global downgraded its investment opinion to neutral from buy. C3AI (+3.61%) is strong on news of considering selling after management change. Coreweave (+1.54%) showed good sales after the close of the market, and net loss also decreased, but as operating profit was weaker than expected, it fluctuated after hours

Automobiles: Tesla rises on supply-demand strength despite adverse materials
Tesla (+3.66 percent) surged despite predictions that sales in China would hit a three-year low, sluggish deliveries in October, and news that the head of the Cybertruck resigned in eight years. The market seems to be focusing more on the expectation that the FSD could be launched in China in February or March next year, which Musk mentioned at a recent shareholders’ meeting. Rivian (+7.75%) rose again today, reflecting expectations for its future after its recent earnings announcement. Wiride (+2.25%) rose on news that it has obtained approval from the UAE for commercial operations of robo-taxi. Quantumscape (-2.05%) falls due to supply and demand factors without new issues. While the price of carbon lithium in China has soared 7.36%, Albemarle (+6.59%) is strong due to upward target stock price and Lithium America (+4.51%) is strong due to upward revision of investment opinion

Big Tech Stocks: Alphabet Rises On Expectations Of $1 Billion Deal With Apple
Alphabet (+3.90%) gained ground after Goldman Sachs raised its price target to $330 from $288 while maintaining its buying opinion. Furthermore, gains were made on news that it would pay $1 billion for Gemini linked to Apple’s Siri. Apple (+0.45%) is limited on news that Goldman Sachs raised its price target to $320 from $279 but delayed iPhone Air launch during the day. Meta Platforms (+1.62%) rose due to the influx of reversals following recent declines. Amazon (+1.63%) rose on news that it is responding to Alibaba’s frenzy by expanding its low-end flat product of Bazar. MS (+1.86%) is also rising on the back of the recent decline due to buyback.

Chinese Firms: Xpeng Jumps On Expectations For Future Strategy
Alibaba (-0.27%) falls as it awaits Gwanggun Day sales data. Jindong Dotcom (-1.20 percent) downgraded Morgan Stanley to downgrade its investment opinion. Pinduoduo (+1.73 percent) rose amid solid sales expectations. Baidu (+5.0 percent) is the world’s cheapest AI leader, and China, quantum