[Good Morning Stock Market] US Semiconductor Stocks Rally... Related Stocks Expected to Rise

On the 27th, the domestic stock market is expected to show strength centered on related industries, influenced by risk asset preference sentiment due to expectations of U.S. tax cuts and the rise of semiconductor stocks such as Nvidia.

On the 26th (local time), the Dow Jones Industrial Average (Dow Index), focused on blue-chip stocks, closed at 43,433.12, down 188.04 points (0.43%) from the previous trading day at the New York Stock Exchange (NYSE), marking a decline after three consecutive trading days of gains. The large-cap S&P 500 index rose 0.81 points (0.01%) to 5,956.06, and the tech-heavy Nasdaq Composite index increased by 48.88 points (0.26%) to 19,075.26, reversing a four-day losing streak with gains.

The stock price increase was led by technology stocks. Semiconductor stocks collectively rose as interest in artificial intelligence (AI)-related stocks increased ahead of Nvidia’s earnings announcement. Nvidia, which had been declining for three consecutive trading days, jumped 3.7%, while Broadcom (5.13%), Micron (4.82%), TSMC (2.77%), Intel (2.31%), Lam Research (1.26%), and ASML (2.29%) also rose together. The Philadelphia Semiconductor Index also surged 2.09%. Nvidia reported strong earnings after market close, exceeding expectations in both revenue and profit.

The passage of a budget resolution in the U.S. House of Representatives, increasing the likelihood of President Donald Trump’s tax cut promises being realized, also had a positive effect on the stock market. The budget resolution centers on large-scale tax cuts, spending reductions, and an increase in the debt ceiling. Since both personal income tax and corporate tax are subject to cuts, it is expected to impact consumer spending capacity and investment expansion.

However, during a Trump administration cabinet meeting, remarks about soon announcing a 25% tariff on Europe triggered a sell-off, causing stock prices to turn downward. In particular, the announcement of tariff plans on automobiles expanded the decline of Tesla (-3.96%), which had been on a recent downward trend.

Additionally, Amazon rose only 0.73% despite unveiling 'Alexa Plus' equipped with generative AI, while Meta, Facebook’s parent company, rose 2.46% following news of a $200 billion AI data center construction. Microsoft (0.46%), Apple (2.70%), and Alphabet, Google’s parent company (1.53%), also increased.

The MSCI Korea Stock Market ETF and MSCI Emerging Markets ETF, closely related to the Korean stock market, rose 0.45% and 0.99%, respectively, creating a favorable atmosphere for the domestic stock market.

Ji-won Kim, a researcher at KB Securities, forecasted, “Although uncertainties such as Trump tariffs and the budget bill remain variables, risk appetite sentiment is maintained, and stock prices are expected to rise by sector.”