[Good Morning Stock Market] US Market: Amazon Market Cap Surpasses $2 Trillion, KOSPI Focuses on Semiconductors

Amazon surpassed a market capitalization of $2 trillion for the first time ever in the U.S. stock market. All three major indices closed slightly higher. The domestic stock market is expected to focus on profit improvements centered on the semiconductor sector.

[Image source=Reuters Yonhap News]

On the 26th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 15.64 points (0.04%) from the previous trading day to close at 39,127.80. The S&P 500 index, which is centered on large-cap stocks, increased by 8.60 points (0.16%) to 5,477.90, while the tech-heavy Nasdaq index closed up 87.51 points (0.49%) at 17,805.16.

Last night, the U.S. stock market fluctuated throughout the session but ended higher in response to positive news from individual companies. Amazon rose nearly 4% on news that it plans to launch a low-priced discount section in China, becoming the fifth company in history to reach a $2 trillion market capitalization. Tesla gained 4.8% after U.S. investment bank Stifel issued a 'buy' rating and set a target price of $265. Stifel particularly gave a positive assessment of Tesla’s Model 3 and Model Y facelift as well as the production of the next-generation Model 2. Additionally, Rivian surged 23% on news that it secured a $5 billion investment from the Volkswagen Group. However, Micron Technology fell more than 5% in after-hours trading as its Q4 earnings outlook fell short of market expectations.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 0.3%, while the Emerging Markets Index ETF declined 0.2%. Eurex KOSPI 200 futures fell 0.3%.

Regarding the domestic stock market, there is analysis suggesting continued attention to the semiconductor sector. Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "Recently, the domestic stock market has been marked by both expectations for semiconductors and concerns about the exchange rate. While upward pressure on the exchange rate remains, Micron’s weak Q4 earnings outlook could present an opportunity for domestic companies." He added, "The recent news of Samsung Electronics’ price increases and positive reviews of SK Hynix from foreign securities firms are points to watch."

Han Ji-young, a researcher at Kiwoom Securities, stated, "Although supply and demand instability for AI-related stocks such as Nvidia has increased, the AI industry ecosystem, including hardware and software, is expanding faster than expected. In this process, the earnings outlook for the KOSPI, centered on domestic semiconductors, is expected to improve further."

Yoo Myung-gan, a researcher at Mirae Asset Securities, analyzed, "The profit growth rate and profit change rate of the semiconductor sector are more attractive compared to other sectors," adding, "The increase in AI-related memory exports is becoming more apparent." He also noted, "The possibility of a rebound in memory spot prices is a positive factor for investor sentiment," and predicted, "The proportion of semiconductors in total operating profit is expected to rise from 17% in Q1 and 22% in Q2 to 29% in Q4."

On the same day, the one-month Non-Deliverable Forward (NDF) USD/KRW exchange rate in New York was 1,392 won, and the USD/KRW exchange rate reflecting this is expected to start 2 won higher.