[Good Morning Stock Market] US Stock Market Rebounds... Domestic Market "Expecting Investor Sentiment Recovery"

With the US stock market closing higher, market attention is focused on the recovery of investor sentiment in the domestic stock market.

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On the 16th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 337.28 points (0.79%) from the previous trading day to close at 43,077.70. The S&P 500, which is centered on large-cap stocks, increased by 27.21 points (0.47%) to 5,842.47, and the tech-heavy Nasdaq rose 51.49 points (0.28%) to close at 18,367.08.

All three major US stock indices closed higher, while the Russell 2000 index, composed of small- and mid-cap stocks, surged 1.64%. Seokhwan Kim, a researcher at Mirae Asset Securities, explained, "So far, about 50 companies within the S&P 500 have reported their third-quarter earnings, and 79% of them exceeded market expectations, which had a positive impact."

Among individual stocks, Nvidia rose 3.1% as Ben Wright, an analyst at the research firm Melius Research, continued to emphasize the promising potential related to artificial intelligence (AI). In addition, United Airlines surged 12.4% on better-than-expected third-quarter earnings and improved profitability outlook for the airline industry. Morgan Stanley also rose 6.5%, hitting an all-time high as both third-quarter revenue and operating profit exceeded market expectations.

Following the successful rebound of the US stock market, attention is on whether the domestic market will also show a positive trend. Ji-won Kim, a researcher at KB Securities, said, "The earnings shock from ASML in the US stock market appears to have settled for now. Recovery of investor sentiment is expected in the domestic market as well," adding, "It is necessary to respond according to upcoming TSMC earnings results and foreign net buying trends."

Along with trends in semiconductor-related companies, there is also analysis warning to be cautious of volatility ahead of the US presidential election. Seonghun Lee, a researcher at Kiwoom Securities, said, "With the US presidential election just three weeks away, the recent rise in support for candidate Trump could increase market volatility," noting, "Recently, the domestic stock market has reflected the Trump trade with strength in defense stocks and weakness in renewable energy stocks."

Lee added, "However, since the support rates between the two candidates are still close, Trump or Harris trade patterns may appear intermittently. As the end of the month approaches, appropriate volatility response strategies will be necessary."