[Good Morning Market] US Stocks Rally, Lee Jaemyung Administration Launches... "Breakthrough of Previous Highs Expected"

On June 3 (local time), the New York stock market closed higher across the board, buoyed by strong employment data and robust performance in the semiconductor sector, despite ongoing uncertainties surrounding tariffs. On June 4, the domestic stock market is also expected to show strength, particularly in semiconductor stocks, and to gain momentum from policy expectations following the inauguration of the new government.

On this day, the Dow Jones Industrial Average closed at 42,519.64, up 214.16 points (0.51%) from the previous session. The S&P 500 rose 34.43 points (0.58%) to 5,970.37, while the Nasdaq gained 156.34 points (0.81%) to finish at 19,398.96. The Russell 2000 index, which focuses on small and mid-cap stocks, also jumped 1.59%, expanding its gains.

The rally was led by technology stocks. Nvidia climbed 2.93%, reclaiming its position as the company with the largest market capitalization. Broadcom and Micron Technology rose by 3.27% and 4.15%, respectively, driving overall strength in the semiconductor sector. The Philadelphia Semiconductor Index also rose by 2.72%. The news that Meta signed a 20-year power purchase agreement with Constellation Energy fueled expectations that growth in the artificial intelligence (AI) industry would continue.

The market was relieved as U.S. employment data exceeded expectations, easing some concerns about an economic slowdown. According to the Job Openings and Labor Turnover Survey (JOLTs) released by the U.S. Department of Labor, the number of job openings in April stood at 7,391,000, not only up from 7,200,000 in the previous month but also far surpassing the market estimate of 7,110,000. If employment data for May, which will be released later, remains solid, the upward momentum is expected to strengthen further.

Rising expectations for trade negotiations also had a positive effect. Before the market opened, it was reported that the Chinese side met with the U.S. ambassador to China and expressed hope for "a sound, stable, and sustainable future between the two countries." U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to hold a phone call this week to discuss tariff negotiations. Previously, President Trump criticized China for violating a trade agreement signed in Geneva and stated that he would speak with President Xi. In addition, the European Union and others are also bringing tariff negotiation proposals to the U.S., which is expected to accelerate the pace of talks.

The domestic stock market is also expected to be buoyed by the rise in U.S. stocks and the start of Lee Jaemyung's presidential term. Kim Ji-won, a researcher at KB Securities, said, "With the launch of the new government, expectations for policy momentum and the resolution of the Korea discount are likely to be maintained." However, she advised that "there is a possibility of short-term profit-taking in policy-related stocks that surged ahead of the presidential election, so a selective approach based on earnings is necessary." Han Ji-young, a researcher at Kiwoom Securities, also predicted, "The market is expected to attempt to break through previous highs, supported by policy expectations following the election."