[Good Morning Stock Market] Korean Stock Market Before Holiday, Can It Withstand Trump’s Tariff Shock?

On the 28th, the domestic stock market is expected to open lower, reflecting the US semiconductor shock caused by the sharp decline of Nvidia the previous day and tariff risks from US President Donald Trump. There is also speculation that a cautious stance may be highlighted ahead of the three-day holiday.

Earlier, on the 27th (local time), the New York stock market closed lower across the board due to President Trump's tariff remarks and cooling investor sentiment in technology stocks including Nvidia. The Dow Jones Industrial Average, centered on blue-chip stocks, closed at 43,239.5, down 193.62 points (0.45%) from the previous trading day. The S&P 500, focused on large-cap stocks, fell 94.49 points (1.59%) to 5,861.57, and the tech-heavy Nasdaq dropped sharply by 530.84 points (2.78%) to 18,544.42.

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In particular, Nvidia plunged 8.48% on the day despite posting a surprise earnings beat in the fourth quarter of last year. Other tech stocks such as Apple (-1.27%) and Microsoft (-1.8%) also showed weakness. Alphabet, Google's parent company, and Tesla fell 2.57% and 3.04%, respectively. President Trump's announcement of tariffs to take effect on March 4 against Canada and Mexico, as well as an additional 10% tariff on China, also weighed on the market.

Seonghoon Lee, a researcher at Kiwoom Securities, explained, "Today, the domestic stock market is expected to open lower, reflecting the US semiconductor slump following Nvidia's sharp decline and uncertainties surrounding Trump's tariff policies. Since the recent domestic market has been experiencing a rotation mainly in sectors that were excessively down last year, it is necessary to pay attention to Chinese consumer stocks such as entertainment and cosmetics, which could sustain momentum from the lifting of the Hallyu ban."

The domestic stock market is scheduled to be closed next Monday, and on March 4, the first trading day of the month, the alternative trading system (ATS) NextTrade is set to launch. Ji-won Kim, a researcher at KB Securities, said, "Considering the upcoming holiday closure, a cautious stance is expected to be highlighted," but also noted, "It is necessary to prepare for the potential release of sell orders."