[Good Morning Stock Market] "US Stocks Show Mixed Trends... Domestic Market Lacks Momentum, Leading to Individual Stock Movements"

The New York stock market showed mixed trends despite disappointment over Nvidia's earnings, buoyed by favorable economic indicators. On the 30th, the domestic stock market is expected to move differently depending on individual company issues due to a lack of momentum.

[Image source=Reuters Yonhap News]

On the 29th (local time) in the New York stock market, the Dow Jones Industrial Average closed at a record high of 41,335.05, up 243.63 points (0.59%) from the previous trading day. Meanwhile, the S&P 500, which focuses on large-cap stocks, fell 0.22 points (less than 0.1%) to 5,591.96, and the tech-heavy Nasdaq dropped 39.6 points (0.23%) to close at 17,516.43.

Nvidia announced that it recorded revenue of $30.04 billion and net income of $16.6 billion in the second quarter (May to July), representing increases of 122% and 168% respectively compared to the same period last year. Both earnings and revenue guidance exceeded market expectations. However, the stock fell 6.38% due to evaluations that it fell short of actual internal forecasts by securities firms. Additionally, although the latest artificial intelligence (AI) chip, 'Blackwell,' is scheduled for release in the fourth quarter as planned, the lack of specific outlook contributed to the disappointment.

Nevertheless, the market was not significantly shaken due to favorable economic indicators. The U.S. Department of Commerce announced that real Gross Domestic Product (GDP) grew at an annualized rate of 3% in the second quarter of this year compared to the previous quarter. This is 0.2 percentage points higher than the preliminary figure (2.8%) announced last month. Along with this, the number of new weekly unemployment insurance claims also returned to a declining trend. According to the U.S. Department of Labor, the seasonally adjusted number of new unemployment insurance claimants for the week ending on the 24th was 231,000, a decrease of 2,000 from the previous week.

Seokhwan Kim, a researcher at Mirae Asset Securities, explained, "The U.S. stock market showed a pattern of strength followed by weakness, synchronizing with the sluggish Nvidia stock price despite the improvement in the second-quarter real GDP growth rate, supported by strong consumer spending."

The domestic stock market is expected to show trends centered on individual stocks. Researcher Kim said, "The clear momentum and supply-demand shortage that have continued in the domestic stock market recently are expected to persist," adding, "It is necessary to focus on and respond to issues by individual industries and companies."

Along with this, semiconductor sector weakness is also expected to continue due to disappointment over Nvidia. Ji-won Kim, a researcher at KB Securities, said, "Following Nvidia's earnings announcement, concerns about growth slowdown have emerged, and many evaluations suggest that market worries are excessive due to expectations being higher than anticipated." He added, "There is a possibility of an extended digestion of sell-offs centered on semiconductor stocks domestically. However, the decline compared to the previous day is expected to be limited."

Meanwhile, the Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 0.2%, and the MSCI Emerging Markets Index ETF increased by 0.1%. Eurex KOSPI 200 futures rose 0.1%.