[Good Morning Stock Market] "NVIDIA Surprise Earnings Impact... KOSPI Expected to Start Higher"

On the 23rd, the KOSPI is expected to start higher. Although the U.S. stock market contracted following the release of the Federal Open Market Committee (FOMC) minutes suggesting a delay in interest rate cuts, foreign capital inflows into the domestic semiconductor sector are anticipated due to Nvidia's earnings surpassing market expectations.

On the 22nd (local time) at the New York Stock Exchange (NYSE), the blue-chip-focused Dow Jones Industrial Average closed at 39,671.04, down 201.95 points (0.51%) from the previous trading day. The large-cap S&P 500 index fell 14.4 points (0.27%) to 5,307.01, and the tech-heavy Nasdaq index dropped 31.08 points (0.18%) to 16,801.54.

Despite Nvidia's strong earnings, the market contracted following the release of the FOMC minutes indicating that interest rate cuts may be delayed.

The minutes stated, "Participants were disappointed by the first-quarter inflation figures" and "It appears it will take longer than previously expected to gain greater confidence that inflation is moving steadily toward 2%."

On the same day, AI leader Nvidia posted a surprise earnings beat for the first quarter of the fiscal year (February to April). Nvidia announced after market close on the 22nd (local time) that its first-quarter revenue reached $26.04 billion, with adjusted earnings per share (EPS) of $6.12.

The KOSPI is expected to start 0.3?0.5% higher that day. Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "After the U.S. market close, Nvidia announced positive results including earnings exceeding market expectations, a 10-for-1 stock split, and a 150% increase in quarterly dividends. This raises expectations for the domestic semiconductor sector and could attract foreign capital inflows. However, a rebound in Samsung Electronics is necessary for the index to rise."

Han Ji-young, a researcher at Kiwoom Securities, said, "With limited impact from the hawkish FOMC minutes and the upcoming Financial Monetary Committee results, the market is expected to start higher, led by large-cap stocks such as semiconductors and automobiles. The KOSPI is also expected to attempt to break its previous high due to Nvidia's after-hours strength." She added, "The sharp rise in automobile stocks the previous day was due to shareholder return expectations and anticipated benefits from China's retaliatory tariffs against the U.S. and Europe."