[Good Morning Stock Market] US Stocks Close Higher... "Focus on Domestic Secondary Batteries, Cars, and Semiconductors"

Following the Senate hearing of Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), expectations for an interest rate cut have increased, leading to a slight rise in the S&P 500 and Nasdaq indices. On the 10th, this positive investment sentiment is expected to be reflected in the domestic stock market, particularly in sectors such as secondary batteries, automobiles (parts), and semiconductors.

On the 9th (local time) at the New York Stock Exchange (NYSE), the blue-chip-focused Dow Jones Industrial Average closed at 39,291.97, down 52.82 points (0.13%) from the previous trading day. The large-cap-focused S&P 500 rose 4.13 points (0.07%) to 5,576.98, and the tech-heavy Nasdaq index increased by 25.55 points (0.14%) to 18,429.29, marking another record high.

[Image source=Reuters Yonhap News]

Among individual stocks, Nvidia and Tesla showed notable strength. Nvidia rose 2.48% as buying surged following upward revisions of its target price by securities firms. Tesla (3.71%) recorded its longest rally in over a year, rising for 10 consecutive trading days. Apple, which regained its position as the largest market cap company after surpassing Microsoft (MS) the previous day, rose 0.38%. British oil company British Petroleum (BP) fell 4.79% after announcing an expected loss of up to $2 billion in the second quarter.

At the Senate hearing that day, Chairman Powell stated that a policy rate cut would not be appropriate until there is greater confidence that inflation is sustainably moving toward 2%. However, he also hinted at the possibility of a rate cut, and the market still highly anticipates a rate cut in September.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) fell 0.1%, while the MSCI Emerging Markets Index ETF rose 0.4%. Eurex KOSPI 200 futures dropped 0.2%.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "Tesla and Nvidia, which are the most held stocks by individual investors investing in overseas stocks such as Seohak Gaemi, showed strong performance, which is expected to have a positive impact on domestic market sentiment."

Researcher Kim added, "By sector, the impact is likely to be limited to secondary batteries, automobiles (parts), and semiconductors. However, considering these sectors are core industries of the domestic stock market, the possibility of an index rise will increase. The inflow of passive funds, mainly through ETFs, is also expected to raise the downside support for the index."

Meanwhile, the 1-month non-deliverable forward (NDF) won-dollar exchange rate in New York stood at 1,381 won, and the won-dollar exchange rate is expected to open 3 won lower on the day.