[Good Morning Stock Market] US Stock Market Closes Lower... Domestic Market Focuses on Earnings Announcements

Major indices on the U.S. stock market gave up early gains and closed lower. The domestic stock market is expected to focus on earnings announcements from major companies.

[Image source=Getty Images Yonhap News]

On the 7th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 234.21 points (0.60%) from the previous trading day to close at 38,763.45. The S&P 500, centered on large-cap stocks, dropped 40.53 points (0.77%) to 5,199.50, and the tech-heavy Nasdaq fell 171.05 points (1.05%) to 16,195.81.

Last night, the U.S. stock market started the session higher but closed lower amid concerns over slowing consumer spending. In particular, the S&P 500 consumer discretionary sector fell 1.4%, declining about 10% over the past five trading days. Individual stocks such as Lyft (-17%), Airbnb (-13%), Disney (-4.5%), Norwegian Cruise Line Holdings (-4.3%), Expedia (-3.7%), and Polo (-3.4%) underperformed.

Seokhwan Kim, a researcher at Mirae Asset Securities, explained, "The biggest issue in the consumer discretionary sector recently is the reduction in consumers' discretionary spending due to economic slowdown," adding, "Stocks of companies that emphasize consumer experience and consumption have seen significant declines."

Meanwhile, investment sentiment across the semiconductor sector also deteriorated, with Super Micro Computer (-20%), Broadcom (-5.3%), and Nvidia (-5.1%) showing declines.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 0.9%, and the Emerging Markets Index ETF increased by 0.6%. Eurex KOSPI 200 futures fell 1.5%.

The domestic stock market is expected to focus on the second-quarter earnings announcements of major companies. Researcher Kim said, "There is a significant divergence in stock performance depending on recent earnings results," and added, "It is necessary to carefully review the companies' earnings announcements." He also noted, "Attention should be paid to the refining, petrochemical, and defense sectors in relation to the Middle East conflict."

Haejung Yang, a researcher at DS Investment & Securities, said, "The market is gradually recovering as volatility decreases after a sharp drop," adding, "Even before volatility increased, the market began to move sectors sensitive to interest rate cuts as the possibility of rate cuts rose." She pointed out, "REITs and healthcare sectors are showing clear excess returns compared to the market."

On the day, the one-month non-deliverable forward (NDF) won-dollar exchange rate in New York was 1,373 won, and reflecting this, the won-dollar exchange rate is expected to start 1 won lower.