[Good Morning Stock Market] "US Stock Market Mixed Close... Domestic Market, 'Semiconductor Buying' Sustainability Key Point"

As the U.S. New York stock market closed mixed with semiconductor stocks showing strength, on the 7th, the Korean stock market is expected to see a tug-of-war between recent buying momentum in semiconductor stocks and profit-taking volumes.

On the 6th, the KOSPI index and others are displayed on the status board of Hana Bank dealing room in Jung-gu, Seoul. Photo by Jo Yong-jun

On the 6th (local time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 42,706.56, down 25.57 points (0.06%) from the previous session. The S&P 500 index, focused on large-cap stocks, rose 32.91 points (0.55%) to 5,975.38, and the Nasdaq index, centered on technology stocks, ended the day up 243.30 points (1.24%) at 19,864.98.

That day, the New York stock market experienced increased volatility early in the session due to tariff threats from U.S. President-elect Donald Trump, but it closed mixed with strength centered on artificial intelligence (AI) and semiconductor-related stocks. The momentum from Microsoft (MS)'s large-scale investment continued, and Jensen Huang, CEO of Nvidia, delivered the keynote speech at CES, the world's largest electronics and IT exhibition, for the first time in six years, reflecting related expectations.

By sector, in the S&P 500 index, technology, communication, and materials stocks rose, while utilities, consumer staples, and financial stocks fell. In particular, Nvidia, the AI leader, surged more than 3%, hitting an all-time high. Related stocks led the price increase as Foxconn, Nvidia's partner in Taiwan, posted record earnings driven by AI server demand. AMD rose 3.33%. Qualcomm and Broadcom also increased by 1.28% and 1.66%, respectively.

Regarding the Korean stock market that day, Ji-Young Han, a researcher at Kiwoom Securities, said, "As Trump’s tariff noise resurfaces, short-term breathing room pressure will arise due to profit-taking following the recent rebound," but added, "The AI momentum remains valid, as seen in the strength of the Philadelphia Semiconductor Index, including Nvidia, which will provide downside rigidity."

Researcher Han noted, "The probability that the current domestic stock market will follow the negative path of early last month is low," explaining, "The sharp drop in the domestic stock market at that time was due to unprecedented amplification of domestic political uncertainty following the imposition of martial law, which created negative ripple effects across the market, including stocks and exchange rates." She further diagnosed, "Although the turmoil of the impeachment political situation is ongoing, from a stock price perspective, political risks have been pre-reflected throughout last month."

Ji-Won Kim, a researcher at KB Securities, said, "As the semiconductor rally continues in the U.S. stock market, the domestic semiconductor sector will also maintain a positive trend," adding, "With Jensen Huang’s keynote speech approaching, expectations for AI semiconductors remain, and foreign capital inflows are expected." He added, "The buying momentum for semiconductors, which had been sluggish due to concerns about the industry outlook, is reviving, leading the overall upward trend in the stock market, which is positive."