[Good Morning Stock Market] "Korean Stock Market Expected to Show Volatility with Each US Election Vote Count Update"

As voting is underway to elect the 47th President of the United States, the Korean stock market on the 6th is expected to show a volatile trend strongly influenced by the US presidential election vote count and exit poll news.

On the day of the US presidential election, November 5th (local time), the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 42,221.88, up 427.28 points (1.02%) from the previous trading day in the New York Stock Exchange. The S&P 500 index, focused on large-cap stocks, rose 70.07 points (1.23%) to 5,782.76, and the Nasdaq index, centered on technology stocks, ended trading at 18,439.17, up 259.19 points (1.43%).

Tesla, considered a 'Trump beneficiary stock,' rose 3.54% during regular trading on expectations of the election results. Trump Media & Technology Group (DJT), the operator of the social networking service (SNS) Truth Social owned by former President Donald Trump, closed down 1.16%, but rose 2.15% in after-hours trading.

A stockbroker is working on the floor of the New York Stock Exchange in the United States.
[Photo by Reuters Yonhap News]

AI leader Nvidia rose 2.84%, surpassing Apple to become the company with the highest market capitalization. Palantir Technologies raised its sales forecast for this year, and with a surge in demand for AI solutions, its stock price soared 23.47%. Optimistic market reactions to new AI-related products had a positive effect. NXP Semiconductors showed a 5.17% decline due to sluggish outlook amid macroeconomic concerns.

On this day, the Korean stock market is focusing on the vote count results of the seven key battleground states in the US presidential election (Pennsylvania, Ohio, Wisconsin, Michigan, Montana, Nevada, Arizona, Texas) and requires a strategy to build scenarios after the election. The battleground state vote count begins at 9 a.m. Korean time with Georgia.

Han Ji-young, a researcher at Kiwoom Securities, said, "Until the winner is clear, the leadership between the Trump trade (strengthening of the dollar and Bitcoin, weakness in eco-friendly and automobile stocks) and the Harris trade (weakness in the dollar and energy stocks, strength in eco-friendly stocks) is expected to shift frequently," adding, "This could temporarily increase price volatility not only in the domestic stock market but also in the overall financial market."

She added, "The domestic stock market closed lower the previous day due to profit-taking in small and mid-cap stocks following a sharp rise from the announcement of the abolition of the financial investment income tax, and weakness in major large-cap stocks such as semiconductors and automobiles amid increased uncertainty over the US presidential election," and "Today, from the start of trading, a volatile market influenced by vote count and exit poll-related flows is expected."