[Good Morning Stock Market] "Ahead of Nvidia Earnings... Domestic Index Expected to Face Upper Limit"

[Image source=Reuters Yonhap News]

The U.S. stock market closed mixed ahead of Nvidia's earnings announcement, and due to cautious sentiment, the upper limit of the KOSPI is expected to be constrained on the 21st.

On the 20th (local time), the Dow Jones Industrial Average on the New York Stock Exchange (NYSE) closed at 39,806.77, down 0.49% from the previous session. The S&P 500, centered on large-cap stocks, rose 0.09% to 5,308.13, and the tech-heavy Nasdaq index closed up 0.65% at 16,794.87.

The Nasdaq hit an all-time high, supported by strong performances from major semiconductor companies such as Nvidia and Micron. Nvidia, ahead of its earnings announcement, showed a gain of over 2%. Microsoft (MS) rose 1.22%, while Tesla fell 1.41%. JP Morgan's stock dropped 4.5% amid speculation that CEO Jamie Dimon's retirement could come sooner.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) fell 0.34%, and the MSCI Emerging Markets Index ETF declined 0.37%. Eurex KOSPI 200 futures dropped 0.19%. Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "Accordingly, the KOSPI is expected to start slightly lower," adding, "Attention should be paid to the technical rebound of the KOSDAQ, which has fallen for three consecutive trading days."

Han Ji-young and Kim Ji-hyun, researchers at Kiwoom Securities, stated, "Supported by the strength of the Philadelphia Semiconductor Index in the U.S., the domestic market is expected to start higher, led by semiconductor stocks." However, they added, "Due to hawkish remarks from Federal Reserve (Fed) officials causing rises in exchange rates and interest rates, combined with cautious sentiment ahead of Nvidia's earnings, the index's upper limit will be constrained." They further noted, "Since it may take time for the market to interpret and reflect Nvidia's earnings announcement, stock price changes this week are unlikely to strongly indicate the future direction of the market. During this period, sector rotation driven by factors such as recent copper strength, Chinese consumption, and electricity demand is expected to continue."

Meanwhile, the 1-month non-deliverable forward (NDF) won-dollar exchange rate in New York stood at 1,358.85 won, and the won-dollar exchange rate is expected to start 3 won higher on the day.