[Good Morning Stock Market] "U.S. Stocks Rally for Fourth Day... Focus on Major Korean Corporate Earnings"

As the perception grows that the worst phase of global tariff risks has passed, the U.S. stock market has continued its rally for the fourth consecutive day. On April 28, the Korean stock market is expected to see investors preparing for sector-specific divergence, ahead of major corporate earnings announcements.

On April 25 (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 40,113.50, up 20.10 points (0.05%) from the previous session. The large-cap-focused S&P 500 rose by 40.44 points (0.74%) to 5,525.21, while the tech-heavy Nasdaq gained 216.90 points (1.26%) to close at 17,382.94.

On the 22nd (local time), traders are seen smiling while working at the New York Stock Exchange (NYSE) in the United States. Photo by Reuters Yonhap News

Although there was a war of words between the U.S. and China regarding the current status of tariff negotiations, the market focused more on the expectation that negotiations would continue and that the worst-case scenario of arbitrary tariff imposition was over. All members of the so-called "Magnificent 7 (M7)" group of major tech companies rose, with Nvidia jumping 4.3% on hopes for progress in U.S.-China trade talks. Tesla surged 9.80%. Optimism continued after Tesla CEO Elon Musk announced he would significantly reduce his activities with the Department of Government Efficiency (DOGE) starting in May.

On this day, Han Jiyoung, a researcher at Kiwoom Securities, said, "This week, the Korean stock market is expected to attempt to enter the 2,600-point range, influenced by the U.S.-China tariff negotiations, key economic indicators, U.S. big tech earnings, and major domestic corporate earnings. The weekly KOSPI is expected to range between 2,480 and 2,610 points."

She added, "As we have now entered the heart of earnings season, sector-specific divergence is expected to become even more pronounced compared to last week, depending on the earnings results of major domestic and international companies. While it is encouraging that most major companies have generally performed well so far, the semiconductor sector has not resolved uncertainty in the memory market, despite SK Hynix’s surprise results last week. It will be important to gain confidence in a market recovery during this week’s scheduled Samsung Electronics company-wide earnings announcement and conference call."

Additionally, Han noted, "Last week, shipbuilding stocks such as HD Hyundai Heavy Industries, which reported strong earnings, saw concentrated inflows as leading stocks. However, it is necessary to be prepared for potential rotation in market leadership after the earnings announcements of other leading stocks in the defense sector, such as Hanwha Aerospace and Korea Aerospace Industries."