[Good Morning Stock Market] US Tech Stocks Rally... "Domestic Market Focuses on Semiconductor and Secondary Battery Stocks"

Traders are working at the New York Stock Exchange (NYSE) in New York City, USA.
Photo by Reuters Yonhap News

As the three major indices of the U.S. New York stock market closed higher, driven by a rebound centered on technology stocks, the domestic index on the 18th is expected to start with a rebound focusing on semiconductor and secondary battery stocks.

On the 17th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 38,778.1, up 188.94 points (0.49%) from the previous trading day. The S&P 500 index, focused on large-cap stocks, rose 41.63 points (0.77%) to 5,473.23, and the technology-heavy Nasdaq index closed at 17,857.02, up 168.14 points (0.95%).

The U.S. stock market started lower due to hawkish remarks from Federal Reserve (Fed) officials suggesting one rate cut this year is appropriate, but closed higher as strength in technology and artificial intelligence (AI)-related stocks continued. U.S. electric vehicle maker Tesla and Apple rose 5.3% and 1.97%, respectively. Microsoft (MS) increased by 1.31%, while Alphabet, Google's parent company, and Amazon rose 0.23% and 0.22%, respectively. U.S. semiconductor company Micron rose 4.58%.

Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 0.81%, and the MSCI Emerging Markets Index ETF increased 0.64%. Eurex KOSPI 200 futures rose 0.82%.

Regarding the domestic stock market on the day, Kiwoom Securities researchers Han Ji-young and Kim Ji-hyun said, "Supported by the easing of political uncertainty from France, the strong European stock market, and record highs in the U.S. stock market, advanced markets are performing well, so the market is expected to start with a rebound," adding, "Considering the strength of U.S. AI-related stocks, the rebound momentum will be differentiated in the domestic market, focusing on semiconductor and secondary battery stocks, which experienced significant price corrections the previous day."

They added, "For the time being, in large-cap stocks rather than theme stocks or small and mid-caps, the price sensitivity of large individual sectors will increase depending on foreign investors' trading directions," and "It is necessary to approach sectors such as semiconductors, automobiles, shipbuilding, cosmetics, and machinery, where foreign net buying has resumed this month or has been sustained previously, with a positive outlook."

Meanwhile, the 1-month Non-Deliverable Forward (NDF) won-dollar exchange rate in New York was 1,377.53 won, and the won-dollar exchange rate is expected to start 4 won lower on the day.