[Good Morning Stock Market] Despite Tesla's Surge, US Markets Fall... Domestic Market Depends on Supply and Demand Improvement

Tesla Records Largest Increase in 11 Years

The U.S. stock market closed lower amid a tech stock rally, with Tesla recording its largest gain in 11 years. On the 25th, the domestic market is expected to hinge on supply and demand conditions.

On October 24 (local time), the Dow Jones Industrial Average, focused on blue-chip stocks, closed at 42,374.36, down 140.59 points (0.33%) from the previous trading day. The S&P 500, centered on large-cap stocks, rose 12.44 points (0.21%) to 5,809.86, while the tech-heavy Nasdaq Composite increased by 138.83 points (0.76%) to close at 18,415.49.

By individual stocks, Tesla surged 21.92%, marking its largest single-day gain in over 11 years since May 2013. The sharp rise was driven by CEO Elon Musk's statement the previous day that vehicle sales are expected to increase by 20-30% next year. The earnings report released after the market close also acted as a positive catalyst. Tesla announced third-quarter revenue of $25.182 billion and earnings per share (EPS) of $0.72. Whirlpool and Lam Research also rose 11.17% and 5.09%, respectively, after reporting earnings that exceeded expectations. In contrast, IBM fell 6.08% as its consulting revenue missed Wall Street forecasts.

As the earnings season gains momentum this week, 160 S&P 500 companies have reported third-quarter results so far. According to market research firm FactSet, the year-over-year earnings growth rate for these companies was 3.4%, falling short of initial projections.

The employment data released this morning showed further improvement. According to the U.S. Department of Labor, initial jobless claims for the week of October 13-19 decreased by 15,000 to 227,000, falling 16,000 below the expert forecast of 243,000. Although recent increases in claims were attributed to Hurricanes Helen and Milton, last week’s figures returned to pre-hurricane levels. Continuing claims, representing those filing for unemployment benefits for at least two weeks, reached 1.897 million for the week of October 6-12, the highest level in about three years. This exceeded both the revised previous week’s figure of 1.869 million and the market estimate of 1.88 million, reflecting the impact of two hurricanes and a Boeing worker strike.

The domestic market, which closed lower the previous day, is also expected to depend on whether supply and demand conditions improve today. The KOSPI fell 0.72%, and the KOSDAQ index dropped 1.42%. Foreign investors sold a net 607.6 billion won, and institutions sold 53.3 billion won worth of stocks on the previous day’s securities market.

Ji-won Kim, a researcher at KB Securities, noted, "While the easing of concerns such as improvements in U.S. employment and the economy and the calming of the sharp rise in Treasury yields is positive, the key factor domestically is whether supply and demand conditions improve." She added, "With the domestic market also expected to enter a full-fledged earnings season, many major companies are forecasted to report strong results today, so attention is needed."