[Good Morning Stock Market] US Stocks Fall Amid AI Supply Glut Debate... Domestic Market Also Affected

The New York stock market, which had fallen sharply over the past weekend, failed to show a meaningful rebound on the 24th (local time). In particular, controversy over an oversupply of artificial intelligence (AI), led by Microsoft (MS), dampened investor sentiment toward tech stocks.

On that day, the Dow Jones Industrial Average closed at 43,461.21, up 33.19 points (0.08%) from the previous trading day. Meanwhile, the Nasdaq and S&P 500 indices continued their three-day losing streak. The S&P 500 fell 29.88 points (0.50%) to 5,983.25, and the Nasdaq Composite dropped 237.08 points (1.21%) to 19,286.92.

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The market weakness was influenced by reports from Wall Street that MS had begun reducing data center leases. This sparked concerns about an oversupply of AI, leading to a series of declines in related stocks.

Looking at major stocks, semiconductor groups such as Nvidia (-3.09%), Broadcom (-4.91%), AMD (-2.46%), Micron (-3.47%), and TSMC (-3.32%) all fell. AI server-related stocks including Arista Networks (-5.71%), Dell (-2.94%), and Super Micro Computer (-7.95%), as well as power grid companies like GE Vernova (-3.65%), Constellation Energy (-5.88%), and Vistra (-5.11%), also experienced significant declines.

This week is expected to maintain market tension. Nvidia is set to release its earnings report in two days, which is attracting more attention than ever as it will be the first report since the emergence of low-cost, high-efficiency AI DeepSeek developed by a Chinese startup.

Before the market closed, President Donald Trump confirmed that the "one-month delay on imposing 25% tariffs on Canada and Mexico" would expire next week, and tariffs would be imposed as scheduled. There are also moves to impose tariffs on the European Union (EU), and the market is expected to fluctuate depending on related statements.

The decline in the U.S. stock market is expected to impact the domestic market as well. As U.S. AI stocks plunged, investment sentiment in domestic AI stocks such as high-bandwidth memory (HBM) and power devices is expected to weaken, leading to a downward start. The weakness in electric vehicle-related stocks like Tesla, amid concerns over intensified industry competition, may also prompt profit-taking in the secondary battery sector, which had shown a sharp rebound over the past few trading days.

Han Ji-young, a researcher at Kiwoom Securities, analyzed, "The MS data center reduction issue was partially pre-reflected during the domestic market session yesterday, so the decline is expected to be recovered during the day. Following the Bank of Korea's Monetary Policy Committee meeting scheduled for today, the market is likely to show sector differentiation influenced by changes in the exchange rate."