[Good Morning Stock Market] Semiconductor Stocks Plunge Including Nvidia Amid ASML Earnings Disappointment... KOSPI Expected to Weaken

Major US Stock Markets All Fall
NVIDIA Drops Over 4%
International Oil Prices Also Down Over 4%
KOSPI Focuses on Semiconductor and Bio Movements

The Korean stock market is expected to show weakness on the 16th. This is due to the decline in the US stock market the previous day (local time) caused by semiconductor stocks and profit-taking sales.

Last night in the New York stock market, the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 42,740.42, down 324.8 points (0.75%) from the previous trading day. The S&P 500 index, focused on large-cap stocks, fell 44.59 points (0.76%) to 5,815.26, and the Nasdaq index, centered on technology stocks, dropped 187.1 points (1.01%) to 18,315.59.

Semiconductor-related stocks plunged due to disappointing earnings forecasts from ASML, negatively impacting the market. ASML plummeted more than 16% amid expectations of scaling back its business in China, and Nvidia fell 4.69% following news that the US government is considering export restrictions on artificial intelligence (AI) chips.

International oil prices fell more than 4% after Israel announced it would target military facilities instead of Iranian oil facilities. This is interpreted as reflecting expectations that there will be no disruption in crude oil supply.

This week, investors are paying close attention to corporate earnings announcements and the release of September retail sales data. In particular, if the retail sales figures are stronger than expected, it could highlight the possibility of sustained growth in the US economy. Discussions about the pace of interest rate cuts by the US Federal Reserve (Fed) are also among the issues investors are carefully monitoring.

The Korean stock market also seems unlikely to avoid the shock from the ASML impact, as the Philadelphia Semiconductor Index fell sharply by 5.28%. Han Ji-young, a researcher at Kiwoom Securities, analyzed, "With the domestic market liquidity thinning, the three main sectors?semiconductors, bio, and secondary batteries?rarely move in the same direction. Since semiconductors and bio showed simultaneous weakness in the US stock market yesterday, the key will be the change in the flow of funds that had been concentrated in semiconductors and bio in the domestic market today."