[Good Morning Stock Market] Nvidia Falls for Third Day... Gloomy KOSPI

Overnight, the New York stock market closed lower due to the weakness of AI leader Nvidia, and the KOSPI is also expected to show weakness on the 25th.

On the 24th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 39,411.21, up 0.67% from the previous trading day. The S&P 500, focused on large-cap stocks, fell 0.31% to 5,447.87, and the tech-heavy Nasdaq index closed down 1.09% at 17,496.82.

Amid recent market fatigue from the rapid rise, investors entered a pause mode while awaiting the Personal Consumption Expenditures (PCE) price index to be released this week. Expectations for interest rate cuts have also diminished. The U.S. Federal Reserve (Fed) reduced its forecast for the number of rate cuts this year from three to one at this month’s Federal Open Market Committee (FOMC) meeting. The market expects one to two cuts within the year. According to the Chicago Mercantile Exchange (CME) FedWatch, the federal funds futures market currently reflects a 67.7% probability that the Fed will cut rates by at least 0.25 percentage points at the September FOMC. The probability of a 0.25 percentage point or greater cut in November is 79.8%.

By stock, Nvidia, which has led the AI rally, fell 6.68%. After surpassing Microsoft (MS) to become the largest market cap on the 19th, fatigue accumulated and it closed lower for three consecutive days. Its market capitalization also fell below $3 trillion, but it maintained its position as the third largest by market cap after Microsoft and Apple.

Apple rose 0.31% despite receiving a preliminary investigation notice from the European Union (EU) Commission stating that its App Store regulations violate the Digital Markets Act (DMA). Carrier Global rose 2.81% after Citigroup upgraded its investment rating from 'neutral' to 'buy.' JPMorgan Chase and Goldman Sachs jumped 1.31% and 2.65%, respectively, and Chevron also rose 2.6%.

With Nvidia, the AI leader, falling 16% from its peak, the domestic stock market is also expected to experience increased volatility. The KOSPI closed at the 2,760 level after falling for two consecutive trading days. The decline in U.S. tech stocks like Nvidia worsened investor sentiment, leading to simultaneous selling by foreigners and institutions. The KOSDAQ also dropped over 1%, sliding to the low 840s.

Kim Seok-hwan, a researcher at Mirae Asset Securities, stated in a report on the day, "Profit-taking in tech stocks is expected to increase downside risks for the domestic stock market."