The U.S. stock market showed mixed closing results with clear sector-level divergence. Buying interest concentrated in defensive and traditional industry stocks, lifting the Dow Jones Industrial Average, while profit-taking in artificial intelligence (AI) and semiconductor-related shares pushed the Nasdaq Composite and S&P 500 into negative territory.

As of the afternoon of October 28 (Korean time), the Dow rose 287.86 points (0.55%) from the previous trading day to 52,497.94. The intraday high was 52,621.03 and the low was 52,472.03.

The S&P 500 declined 10.78 points (0.15%) to 7,402.46. It rose to 7,418.71 during the session but gave up those gains, moving near the 7,400 level.

The tech-heavy Nasdaq Composite fell 212.42 points (0.85%) to 24,719.66, with an intraday high of 24,831.82 and a low of 24,705.37, posting the steepest decline among major indices. The small-cap Russell 2000 also dropped 9.64 points (0.33%) to 2,938.40.

The key factor dividing the market this session was an 'expectation recalibration' for the AI and semiconductor sectors. As related stocks rallied rapidly in recent weeks, investor sentiment has grown more focused on verifying whether large-scale corporate AI capital expenditures are translating into actual revenue and profit growth at a sufficient pace. Analysts attribute the selling pressure on growth stocks to caution over the lack of earnings visibility needed to justify high valuations.

The potential expansion of China's AI and semiconductor competitiveness also weighed on sentiment. Growing uncertainty over whether global semiconductor companies can sustain their market dominance and profitability long-term dragged down major semiconductor names, including Nvidia, pulling the Nasdaq lower.

The Dow, by contrast, gained on strength in consumer staples, healthcare, and other stocks with stable earnings. Capital previously concentrated in tech rotated into traditional blue-chip stocks with clearer earnings visibility, creating a stark divergence between indices.

Market participants are simultaneously watching the Federal Reserve's monetary policy direction and upcoming earnings releases from major technology companies. Changes in interest rate expectations can directly affect discount rates for growth stocks and corporate valuations. Meanwhile, the scale of AI investment disclosed by Big Tech firms and the profitability of related businesses are seen as key variables that will shape sentiment toward semiconductor and tech stocks.

The critical question ahead is whether the pullback in semiconductor stocks will remain a short-term profit-taking phase or expand into a broader valuation reassessment across the tech sector. Alongside whether rotational buying into defensive and traditional industrial stocks will continue, Treasury yields, Fed policy signals, and Big Tech earnings outlooks will determine the market's direction.

[This article was written with AI assistance.]

[※ This article does not constitute investment advice. Investment decisions and any resulting responsibility lie solely with the investor.]