[Good Morning Stock Market] "Nvidia-Driven Tailwind... Semiconductor Sector Requires Attention"

On the 5th, the KOSPI is expected to start higher. With the U.S. stock market closing higher, Jensen Huang, CEO of Nvidia, revealed that Samsung Electronics is undergoing certification procedures for high-bandwidth memory (HBM), which is anticipated to have a positive impact on the domestic semiconductor sector.

[Image source=Reuters Yonhap News]

On the 4th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 38,711.29, up 140.26 points (0.63%) from the previous trading day. The S&P 500 index, focused on large-cap stocks, rose 7.94 points (0.15%) to 5,291.34. The tech-heavy Nasdaq index ended the session at 16,857.05, up 28.38 points (0.17%).

The U.S. stock market saw expectations for an interest rate cut spread due to signals of a slowdown in the labor market. According to the Job Openings and Labor Turnover Survey (JOLTS) released by the U.S. Department of Labor, job openings in April totaled 8.059 million, the lowest level in over three years since February 2021. This figure was below market expectations (8.37 million) and the previous month's number (8.355 million). The hiring rate was 3.6%, and the voluntary quit rate was 2.2%, both slightly up from the previous month (3.5% and 2.1%, respectively).

Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "The U.S. stock market closed with a weak start and strong finish as April job postings fell short of market expectations, leading to a decline in Treasury yields and a recovery in expectations for a rate cut in September."

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) fell 0.4%, and the MSCI Emerging Markets Index ETF dropped 1.4%. Eurex KOSPI 200 futures rose 0.6%. Considering this, the KOSPI is expected to start higher.

Han Ji-young, a researcher at Kiwoom Securities, said, "Thanks to the late-session rebound in the U.S. stock market and the decline in interest rates, the market is expected to start higher. However, the Thursday market holiday and cautious sentiment ahead of the U.S. May employment report on Friday are likely to limit upward momentum."

However, since Jensen Huang, Nvidia's CEO, dismissed rumors related to Samsung Electronics' HBM, it is advised to closely monitor the semiconductor sector.

According to foreign media, at a press conference held at a hotel in Taipei, Taiwan, Huang said, "We are inspecting HBM semiconductors provided by Samsung Electronics and Micron," adding, "Samsung Electronics has never failed any certification tests, but Samsung's HBM products require more engineering work."

One researcher noted, "From an industry perspective, the concentration of demand and resulting volatility expansion in some oil stocks that have recorded consecutive upper limits due to expectations around the Yeongilman oil field should be watched carefully. Additionally, the report by Jensen Huang that 'Samsung Electronics, SK Hynix, and Micron will supply HBM' could trigger a rotation in demand within the semiconductor sector, including Samsung Electronics and SK Hynix, which will be a key point to observe."

Kim Ji-won, a researcher at KB Securities, said, "Nvidia CEO Jensen Huang's dismissal of rumors related to Samsung Electronics' HBM is expected to have a positive impact on domestic semiconductor stocks."