[Good Morning Stock Market] US Stock Market Nasdaq Plunges, Dow Breaks 41,000 for the First Time "Caution on KOSPI Semiconductor Stocks"

In the US stock market, the Nasdaq index plunged 2.8% due to a sell-off in semiconductors. Meanwhile, the Dow Jones Industrial Average surpassed the 41,000 mark for the first time in history. The domestic stock market is expected to be cautious about selling pressure on semiconductor-related stocks.

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On the 17th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 243.60 points (0.59%) from the previous trading day to close at 41,198.08. The S&P 500 index, centered on large-cap stocks, fell 78.93 points (1.39%) to 5,588.27, and the tech-heavy Nasdaq index closed down 512.41 points (2.77%) at 17,996.93.

Last night in the US stock market, the Nasdaq index recorded its largest single-day drop since December 2022. In particular, the Philadelphia Semiconductor Index fell 6.8%, triggering a broad sell-off in technology stocks, including semiconductors and semiconductor equipment and parts. Dutch semiconductor equipment manufacturer ASML plunged 13% despite reporting solid second-quarter earnings due to a weak third-quarter earnings outlook. Other declines included Apple (-2.5%), Amazon (-2.6%), Meta (-5.7%), Nvidia (-6.6%), Broadcom (-7.9%), TSMC (-8.0%), and AMD (-10%).

Seokhwan Kim, a researcher at Mirae Asset Securities, explained, "The sell-off in semiconductors has led to selling pressure on large technology stocks, putting a brake on the rally that had continued until now."

On the other hand, the Dow index continued its record-high rally, rising for six consecutive trading days. Johnson & Johnson, which reported strong earnings, rose 3.7%, and energy stocks such as Chevron (2.2%) and ExxonMobil (1.4%) also showed strength.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) fell 1.7%, and the Emerging Markets Index ETF dropped 1.6%. Eurex KOSPI 200 futures declined 1.0%.

The domestic stock market is expected to be cautious about the emergence of selling pressure on semiconductor-related stocks. Researcher Kim said, "Attention should be paid to the semiconductor-centered sell-off and the deterioration of investor sentiment."

Min-sook Chae, a researcher at Korea Investment & Securities, said, "Until SK Hynix announces its earnings, it is a period without major events," adding, "After a short-term correction due to uncertainty in the macro environment, IT companies' earnings announcements will follow, and investor sentiment in the semiconductor sector is expected to recover." She added, "During periods of increased market uncertainty, it is necessary to focus on earnings-driven management."

On the same day, the one-month non-deliverable forward (NDF) won-dollar exchange rate in New York was 1,378 won, and reflecting this, the won-dollar exchange rate is expected to start down 5 won.