The U.S. stock market plunged due to disappointing earnings from big tech companies and concerns over an economic slowdown, causing the domestic stock market on the 25th to also fail to avoid a downward trend.
On the 25th, as the U.S. stock market experienced its largest drop since 2022 due to concerns over big tech earnings, the KOSPI index also opened at 2719.74, down 38.97 points (-1.41%) from the previous trading day (2758.71). The index is displayed on the electronic board in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Jo Yongjun jun21@
As of 10:15 a.m. that day, the KOSPI was trading at 2710.80, down 47.91 points (1.74%) from the previous day. The KOSPI opened at 2721.29, down 37.42 points (1.36%), and widened its losses. Currently, foreigners and institutions sold stocks worth 288 billion KRW and 50 billion KRW respectively. On the other hand, individuals purchased stocks worth 357.7 billion KRW.
Among the top market capitalization stocks, Celltrion (3.67%), Kakao (1.52%), NAVER (1.46%), Shinhan Financial Group (1.28%), and Samsung SDI (0.90%) are rising. Conversely, SK Hynix (-6.67%), Hyundai Motor (-2.90%), LG Electronics (-2.31%), POSCO Holdings (-2.16%), LG Chem (-2.10%), and LG Energy Solution (-1.87%) are declining. SK Hynix announced strong earnings with an operating profit of 5.4685 trillion KRW in Q2 this year, turning profitable, but it was weak like Nvidia’s stock plunge due to concerns over an AI bubble.
By sector, telecommunications (1.45%), pharmaceuticals (0.84%), and transportation and warehousing (0.02%) showed some gains. Most sectors, including machinery (-5.04%), medical precision (-3.29%), electrical and electronics (-2.95%), food and beverages (-2.25%), and manufacturing (-2.25%), were in decline.
On the 24th (local time) at the New York Stock Exchange (NYSE), the blue-chip-focused Dow Jones Industrial Average closed at 39,853.87, down 504.22 points (1.25%) from the previous trading day. The large-cap S&P 500 index closed at 5,427.13, down 128.61 points (2.31%), marking the largest daily drop since December 2022. The tech-heavy Nasdaq index plunged 654.94 points (3.64%) to close at 17,342.41. The market capitalization of the Magnificent 7 (Apple, Microsoft, Google Alphabet, Amazon, Nvidia, Meta, Tesla) evaporated by about 760 billion USD. Disappointing earnings reports from related companies and concerns over an economic slowdown weighed heavily.
At the same time, the KOSDAQ index recorded 795.37, down 18.88 points (2.32%) from the previous session. The index opened at 802.28, down 11.97 points (1.47%), and widened its losses. Foreigners sold stocks worth 63.3 billion KRW, while individuals and institutions net bought stocks worth 63.8 billion KRW and 9.5 billion KRW respectively.
Among the top market capitalization stocks, Celltrion Pharm (1.80%) and HPSP (0.30%) were on the rise. Conversely, Techwing (-10.09%), EO Technics (-7.25%), Alteogen (-4.76%), Silicon투 (-4.72%), Enchem (-5.01%), Rainbow Robotics (-5.07%), Samchundang Pharm (-4.54%), and JYP Ent. (-4.36%) were declining.
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