[Good Morning Market] S&P 500 Hits 5600 for the First Time Ever, Domestic Market Focuses on Semiconductors

In the US stock market, the S&P 500 index surpassed the 5600 mark for the first time in history. The domestic stock market is expected to focus on the semiconductor sector.

[Image source=Reuters Yonhap News]

On the 10th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 429.39 points (1.09%) from the previous trading day to close at 39,721.36. The large-cap focused S&P 500 index increased by 56.93 points (1.02%) to 5,633.91, while the tech-heavy Nasdaq index closed up 218.16 points (1.18%) at 18,647.45.

Last night, all major US indices recorded gains of over 1%, continuing the summer rally. The S&P 500 and Nasdaq indices set a record by rising on every trading day this month, and the Dow reached its highest level in seven weeks. About 80% of the companies comprising the S&P 500 participated in the gains, with the IT, materials, and healthcare sectors showing increases of over 1%.

Among individual stocks, TSMC rose 3.5% after announcing that its sales last month increased by approximately 33% compared to the same period last year. This led to simultaneous gains in major semiconductor companies such as Nvidia (2.7%), Micron Technology (4.0%), and AMD (3.9%). Additionally, Apple rose 1.9% as the expected sales volume of the soon-to-be-released iPhone 16 is projected to increase by 10% year-over-year to about 90 million units. This marked Apple's seventh consecutive day of gains, setting its longest winning streak since March 2012.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 1.0%, and the Emerging Markets Index ETF increased by 0.6%. Eurex KOSPI 200 futures rose 0.7%.

There is analysis suggesting that the domestic stock market should pay attention to the semiconductor sector. Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The fact that the US stock market continued a historic record rally centered on semiconductors will have a favorable impact on the domestic stock market," adding, "It is particularly important to focus on the net buying trend by foreigners centered on Samsung Electronics and SK Hynix." He further analyzed, "This year, foreigners have purchased more than about 17 trillion won worth of semiconductors," and noted, "The recent strengthening of Samsung Electronics' profit momentum is also positive."

Han Ji-young, a researcher at Kiwoom Securities, said, "Thanks to TSMC's strong performance, there will be strength centered on artificial intelligence (AI) and semiconductors." She added, "Samsung Electronics unveiled seven products at 'Galaxy Unpacked 2024,' including the Galaxy Z Flip6, Fold6, Ring, and Watch7," and continued, "The market will evaluate the industry's forecast that Fold and Flip sales will exceed those of previous models by more than 30%."

On the same day, the one-month New York Non-Deliverable Forward (NDF) USD/KRW exchange rate was 1,381 won, and reflecting this, the USD/KRW exchange rate is expected to start down by 4 won.