[Good Morning Stock Market] "S&P 500 Hits Record High Led by Nvidia... KOSPI Expected to Start Higher"

The three major U.S. stock indices recovered investor sentiment and closed higher, influenced by the rebound in Nvidia's stock price and the decline in U.S. Treasury yields, leading to expectations that the KOSPI will also start higher on the 20th.

On the 18th (local time), a trader is working at the New York Stock Exchange (NYSE) in New York City, USA. [Image source=UPI Yonhap News]

On the 19th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 39,110.76, up 320.33 points (0.83%) from the previous trading day. The large-cap S&P 500 index rose 29.09 points (0.56%) to a record high of 5,178.51. The Nasdaq index closed at 16,166.79, up 63.34 points (0.39%).

The reversal in Nvidia's stock price stood out. Nvidia, which unveiled the next-generation artificial intelligence (AI) chip B100 based on the new graphics processing unit (GPU) Blackwell the previous day, fell early in the session but closed up 1.07%. Microsoft (MS), which plans to acquire AI startup Inflection, rose 0.98%. Related stocks such as Coinbase (-4.0%) and MicroStrategy (-5.7%) were weak due to declines in virtual asset prices like Bitcoin. Additionally, ahead of the Federal Open Market Committee (FOMC) monetary policy meeting, Treasury yields, which had risen on expectations of delayed rate cuts, fell, stimulating investor sentiment.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) fell 0.73%, and the MSCI Emerging Markets Index ETF dropped 0.49%. Eurex KOSPI 200 futures rose 0.49%.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The KOSPI is expected to start up 0.2-0.4% today," adding, "The broad profit-taking movement mainly by foreigners seen the previous day is expected to be limited." He continued, "While a rebound buying trend may flow in, given the upcoming FOMC meeting results, fluctuations are expected to be limited," and noted, "The remark by Jensen Huang, CEO of Nvidia, that 'we are paying attention to Samsung Electronics' high-bandwidth memory (HBM) test results' is noteworthy."

Han Ji-young and Kim Ji-hyun, researchers at Kiwoom Securities, said, "Today, the market is expected to start higher, supported by technical buying due to recent excessive declines and the intraday rebound success in the U.S. stock market," but added, "The rebound momentum is expected to be limited due to FOMC caution and cautious sentiment on Micron's earnings." They also noted, "From an industry perspective, attention should be paid to the rebound in Nvidia's stock price, which has been a driving force behind the U.S. stock market's strength," adding, "It is expected to restore investment sentiment in the overall semiconductor sector, including domestic AI."

Meanwhile, the one-month non-deliverable forward (NDF) won-dollar exchange rate in New York was 1,335.33 won, and the won-dollar exchange rate is expected to start 5 won lower on the day.