[Good Morning Stock Market] US Tech Stocks Rally... Market Volatility Expected to Increase Before Chuseok

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Last night, the New York stock market closed higher across the board on a tech stock rally, but the domestic market is expected to show volatility on the 13th ahead of the Chuseok holiday. It is analyzed that short-term hedge (risk avoidance) volumes may be released to avoid uncertainty.

The three major indices of the U.S. New York stock market all closed higher. On the New York Stock Exchange, the blue-chip-focused Dow Jones Industrial Average closed at 41,096.77, up 235.06 points (0.58%) from the previous trading day. The large-cap-focused S&P 500 index rose 41.63 points (0.75%) to 5,595.76, and the tech-heavy Nasdaq index ended trading at 17,569.68, up 174.15 points (1%).

Among individual stocks, the tech stock rally was particularly prominent. Nvidia, which surged more than 8% the previous day, rose 1.92%. Alphabet, Google's parent company, and Meta, Facebook's parent company, increased by 2.23% and 2.69%, respectively. However, Trump Media & Technology Group (TMTG), the parent company of the social networking service (SNS) Truth Social owned by former U.S. Republican presidential candidate Donald Trump, fell 3.63% after dropping more than 10% the previous day. The Democratic candidate Vice President Kamala Harris's strong performance in the presidential TV debate held on the 10th negatively affected investor sentiment.

However, Micron Technology plunged 3.79%, and the Philadelphia Semiconductor Index also fell 0.24%. In Micron's case, BNP Paribas downgraded its outlook on the memory sector and lowered its investment rating and target price.

Price indicators met expectations, but employment indicators showed mixed signals with signs of cooling. According to the U.S. Department of Labor, the Producer Price Index (PPI) for August rose 1.7% year-over-year on an annualized basis, significantly easing from 2.1% in July. The core PPI, which excludes volatile food and energy prices to show the underlying inflation trend, rose 0.3% in August compared to the previous month, exceeding expert forecasts of 0.2%.

On the other hand, the labor market showed signs of cooling. According to the U.S. Department of Labor, initial jobless claims for the week of September 1?7 were 230,000, an increase of 2,000 from the revised figure of 228,000 the previous week. This exceeded expert expectations of 227,000 by 3,000. Continued jobless claims, which count those claiming unemployment benefits for at least two weeks, rose by 5,000 to 1.85 million for the week of August 25?31, compared to the revised 1.845 million the previous week.

The domestic stock market is expected to see an increase in investors liquidating holdings to remove uncertainty ahead of the long holiday and simultaneous expiration date. This year, monetary policy announcements from the U.S. and Japan are also scheduled immediately after the Chuseok holiday from September 16 to 18.

The KOSPI closed at 2,572.09, up 2.34% from the previous day. The KOSDAQ index closed at 731.03, up 3.05% from the previous day.

Seokhwan Kim, a researcher at Mirae Asset Securities, said, "Ahead of the simultaneous expiration date and the long holiday, there is a possibility of selling pressure as positions are reduced and risk hedging is carried out. The weakness of Micron, which has a high correlation with SK Hynix, which surged the previous day, is also a concerning factor."