[Good Morning Stock Market] "US Stock Market Shows Cautious Mood Ahead of Nvidia Earnings"

The U.S. New York stock market closed slightly higher ahead of Nvidia's earnings announcement. On the 28th, the Korean stock market is also expected to show a cautious stance, with differentiation depending on individual company issues.

[Image source=AFP Yonhap News]

On the 27th (local time), the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 41,250.5, up 9.98 points (0.02%) from the previous trading day. The S&P 500 index, focused on large-cap stocks, rose 8.96 points (0.16%) to 5,625.8, and the Nasdaq index, centered on technology stocks, jumped 29.06 points (0.16%) to 17,754.82.

The market showed a cautious stance ahead of Nvidia's earnings announcement. According to market research firm LSEG, Wall Street expects Nvidia's Q2 (May to July) revenue to increase 112% year-on-year to $28.7 billion. Some forecasts even suggest that revenue could exceed $30 billion.

Seokhwan Kim, a researcher at Mirae Asset Securities, explained, "The U.S. stock market closed slightly higher amid quiet trading ahead of Nvidia's earnings announcement and the Labor Day holiday."

Economic indicators showed a favorable outlook. The consumer confidence index improved. According to the U.S. Conference Board (CB), the U.S. consumer confidence index for August recorded 103.3, rising from the revised July figure of 101.9. However, the consumer confidence survey showed worsening employment sentiment, which stirred concerns about the August nonfarm payroll figures.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 0.1%, and the MSCI Emerging Markets Index ETF also increased by 0.1%. Eurex KOSPI 200 futures rose 0.1% as well.

The domestic stock market on the 28th is also expected to maintain a cautious stance. Ji-won Kim, a researcher at KB Securities, said, "Despite favorable indicator results, the stock market lacked direction, but Nvidia continued to be regarded as the most important stock in the world, drawing attention. There is a mixed sentiment of anticipation and caution toward Nvidia's earnings." He added, "The domestic market is expected to maintain a cautious trend, and although the dollar's strength has eased, foreign investor demand remains weak, so a cautious approach is necessary."

Jihyun Kim, a researcher at Kiwoom Securities, explained, "Recently, as expectations for interest rate cuts have become clearer, a rapid rotation between cyclical stocks (finance, chemicals, utilities) and growth stocks (software, entertainment, media, internet games) is underway. Going forward, differentiation is expected to be based on earnings."