[Good Morning Stock Market] Decline in US Tech Stocks Including Nvidia... Domestic Semiconductor Stocks Expected to Be Affected

Jensen Huang, CEO of NVIDIA, is speaking at a global press conference held at the Fontainebleau Hotel in Las Vegas, USA, on the 7th (local time). Photo by Yonhap News

In the previous day’s New York stock market, technology stocks led by Nvidia all fell, and it is expected that the domestic market will also be affected, especially semiconductor stocks.

On the 7th (local time), the Dow Jones Industrial Average (Dow Index), centered on blue-chip stocks, closed at 42,528.36, down 178.2 points (0.42%) from the previous trading day. The S&P 500 Index, focused on large-cap stocks, fell 66.35 points (1.11%) to 5,909.03, and the technology-heavy Nasdaq Index plunged 375.3 points (1.89%) to close at 19,489.68.

Nvidia dropped 6.22% in one day. This came just one day after its partner Foxconn posted strong earnings and surged 3.43%, hitting an all-time high. The sharp rise in government bond yields appears to have been a burden. Jensen Huang, CEO of Nvidia, declared entry into autonomous vehicles and robotics in his keynote speech at CES 2025, the world’s largest electronics and IT exhibition, but the market expressed disappointment. Electric vehicle maker Tesla fell 4.06% after Bank of America (BoA) downgraded its investment rating citing overvaluation and strategic risks. Apple fell 1.14%, and Microsoft (MS) dropped 1.28%.

The domestic stock market closed slightly down the previous day. The KOSPI closed at 2,398.94, down 0.02% from the previous session. Foreigners’ net selling and individuals’ net buying battles continued, keeping the market in a narrow range before closing slightly down. Trading volume was 344.7 million shares, and the trading value was tentatively estimated at 6.7912 trillion won. The KOSDAQ Index showed strong gains driven by institutional and individual buying. It closed at 686.63, up 1.24% from the previous day.

Concerns about exchange rate volatility remain high. On the 7th, the dollar-won exchange rate closed down 1.10% at 1,453.50 won. Kiwoom Securities explained, "This is presumed to be due to the inflow of dollar volume estimated to be from the National Pension Service’s strategic currency hedging and foreign reports suggesting that U.S. President Donald Trump may ease tariff policies."

Expectations for CES 2025, the world’s largest consumer electronics show, are high. This year, 4,800 companies are participating, and the event runs from the 7th to the 10th. Domestically, 1,031 companies including Samsung Electronics, LG Electronics, SK Hynix, and Hyundai Mobis are participating.

Ji-won Kim, a researcher at KB Securities, said, "With the opening of CES 2025 and Jensen Huang’s speech, the market expressed disappointment, intensifying profit-taking pressure on technology stocks." He added, "The recent rebound led by semiconductor and other technology stocks is also burdened by the U.S. 10-year Treasury yield rising close to 4.7%." He further noted, "Samsung Electronics is scheduled to announce its preliminary earnings today, and market attention is expected to shift to the JP Morgan Healthcare Conference next week."