[Good Morning Stock Market] Nvidia Up 12.8%... "Expectations for Improved Semiconductor Investment Sentiment in Domestic Market"

As the three major indices of the U.S. New York stock market closed higher due to a rebound in tech stocks and increased prospects of interest rate cuts, the domestic stock market on the 1st is expected to lead a rebound driven by improved semiconductor investment sentiment, a decline in the won-dollar exchange rate, and an influx of foreign investors' net purchases in the spot market.

[Image source=Getty Images Yonhap News]

On the 31st of last month (local time) at the New York Stock Exchange (NYSE), the blue-chip-focused Dow Jones Industrial Average closed at 40,842.79, up 99.46 points (0.24%) from the previous trading day. The large-cap-focused S&P 500 index rose 85.86 points (1.58%) to 5,522.3, and the tech-heavy Nasdaq index ended trading at 17,599.4, up 451.98 points (2.64%).

In particular, the S&P 500 semiconductor and semiconductor equipment sector surged 10.2%. Nvidia, which had fallen 7% the previous day, rose 12.81% as investment bank Morgan Stanley selected it as a 'top pick' and bargain buying flowed in. U.S. semiconductor company AMD rose 4.36% after reporting second-quarter earnings that exceeded expectations. Microsoft (MS) announced quarterly revenue and net income that surpassed expectations after the previous day's market close, but shares fell 1.08% amid reactions that the profitability of its artificial intelligence (AI) and cloud businesses fell short of expectations.

The U.S. Federal Reserve (Fed) decided to keep the benchmark interest rate unchanged at the July Federal Open Market Committee (FOMC) meeting but indicated that a rate cut could be discussed next month as broader disinflation (slowing inflation) is underway. Fed Chair Jerome Powell said at a press conference, "A policy rate cut could be discussed at the next meeting next month," adding, "We are not yet at the appropriate time to cut rates, but we are getting closer."

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 3.1%, and the MSCI Emerging Markets Index ETF increased by 2.2%. Eurex KOSPI 200 futures rose 0.8%.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The domestic stock market partially priced in news of eased semiconductor export restrictions to China for the U.S.'s allies the previous day, leading to strong net buying of foreign futures from the afternoon session, and Samsung Electronics and SK Hynix expanded their gains." He added, "We expect a rebound today due to broad improvement in semiconductor investment sentiment and an influx of foreign investors' net purchases in the spot market following the decline in the won-dollar exchange rate."

Meanwhile, the New York non-deliverable forward (NDF) won-dollar exchange rate for one month stood at 1,366 won, and the won-dollar exchange rate is expected to start the day 4 won lower compared to the previous day.