[Good Morning Stock Market] "US Stock Market Shows Mixed Trends Amid Semiconductor Profit-Taking"

On the 21st, the domestic stock market is expected to see profit-taking in semiconductor-related stocks. This follows a weakness in the semiconductor sector centered on Nvidia in the U.S. stock market.

[Image source=Reuters Yonhap News]

The New York stock market showed mixed trends on the 20th (local time). Fatigue from the recent market rally had accumulated, and profit-taking selling emerged.

At the New York Stock Exchange (NYSE), the blue-chip-focused Dow Jones Industrial Average closed at 39,134.76, up 299.9 points (0.77%) from the previous trading day. The large-cap-focused S&P 500 index fell 13.86 points (0.25%) to 5,473.17, while the tech-heavy Nasdaq index dropped 140.65 points (0.79%) to close at 17,721.59.

By stock, Nvidia fell 3.54%. Although it surpassed Microsoft (MS) on the 18th to become the largest by market capitalization, it dropped back to second place the next trading day. Apple also declined by 2.15%.

Seokhwan Kim, a researcher at Mirae Asset Securities, analyzed, "The weakness in the semiconductor sector centered on Nvidia weighed on the stock indices, and the Philadelphia Semiconductor Index fell by as much as 2.7% compared to the previous day. There was broad selling pressure across the semiconductor sector, including Broadcom, Qualcomm, Micron, and Applied Materials, not just Nvidia."

The securities industry explains that the domestic stock market should also consider the possibility of profit-taking in semiconductor-related stocks. Jiwon Kim, a researcher at KB Securities, said, "The U.S. market saw increased volatility ahead of the futures and options expiration amid high valuation concerns. The S&P 500 index broke through the 5,500 level intraday but then retreated. Especially, the weakness in tech stocks due to massive profit-taking is expected to impact the domestic market, and caution ahead of the weekend is also anticipated."

Jiyoung Han, a researcher at Kiwoom Securities, explained, "Due to divergent moves by central banks, hawkish remarks from Federal Reserve (Fed) officials, and profit-taking in artificial intelligence (AI) stocks, the U.S. market showed weakness, and profit-taking selling is expected. However, depending on export results up to the 20th, a rebound attempt is expected this week in consumer goods sectors such as cosmetics and food and beverages, which had been adjusted."

Meanwhile, the Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) fell 0.4%, and the MSCI Emerging Markets Index ETF declined 0.2%. Eurex KOSPI 200 futures dropped 0.8%.