[Good Morning Stock Market] US Big Tech Disappointing Earnings... "Increased Volatility in Domestic Stock Market"

The U.S. stock market closed lower across the board due to weak earnings from U.S. big tech companies, leading to expectations of increased volatility in the domestic stock market on the 1st.

On the 31st of last month (local time), the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 41,763.46, down 378.08 points (0.9%) from the previous trading day in the New York stock market. The S&P 500, focused on large-cap stocks, fell 108.22 points (1.86%) to 5,705.45, and the tech-heavy Nasdaq dropped 512.78 points (2.76%) to close at 18,095.15.

[Image source=Reuters Yonhap News]

Weakness in tech stocks was prominent. Microsoft (MS) and Meta, which announced earnings after the previous day's close, fell 6.05% and 4.09%, respectively. Although both companies exceeded expectations this quarter, disappointing revenue forecasts for the next quarter led to continued selling pressure. Super Micro Computer, which is under suspicion of accounting fraud, plunged nearly 12%. Seokhwan Kim, a researcher at Mirae Asset Securities, noted, "Following the earnings announcements of MS and Meta, which attracted market attention, concerns about AI investment emerged, spreading selling pressure across tech stocks."

Jung-hoon Seo, a researcher at Samsung Securities, said, "Given the market's negative assessment of MS and Meta, who are large purchasers of AI-related semiconductors, Nvidia's stock also fell nearly 5%, weighing on the index. Apple, Amazon, Alphabet, and Tesla all closed down around 2-3%."

The domestic stock market is also expected to see increased volatility in individual companies. Ji-won Kim, a researcher at KB Securities, said, "Disappointment over big tech earnings led to weakness in the U.S. stock market. With the presidential election next week, uncertainty has increased volatility by stock," adding, "The domestic market will also continue to experience increased volatility and differentiated trends. The earnings of the EcoPro group stocks and the U.S. employment report released on this day are important."

Jinhyuk Kang, a researcher at Shinhan Investment Corp., explained, "The U.S. presidential election on the 5th is the biggest event, as it will determine the direction of international politics, economy, and diplomatic policies for the next four years," adding, "The market is in a wait-and-see mode, but volatility in the stock market is expected to increase before and after the election."