[Good Morning Market] Will KOSPI Settle Above 3,200... Nasdaq and S&P 500 Hit Record Highs

The New York stock market closed higher despite concerns over tariffs. Both the Nasdaq and S&P 500 indices reached new all-time highs. The market's sensitivity to the Trump administration's tariff policies appears to be diminishing over time.

On July 10 (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose by 192.34 points (0.43%) to close at 44,650.64. The S&P 500 index was up 17.20 points (0.27%) at 6,280.46, while the tech-heavy Nasdaq Composite gained 19.33 points (0.09%) to finish at 20,630.66. Both the S&P 500 and Nasdaq indices set new record highs.

New York Stock Exchange. Photo by UPI

President Donald Trump threatened in a letter released the previous day to raise tariffs on Brazilian imports to 50% starting August 1. However, this did not have a significant impact on investor sentiment.

Among major stocks, Nvidia, which surpassed a $4 trillion market capitalization during trading the previous day, climbed nearly 1% to close above the $4 trillion mark. The rise is attributed to the news that its partner TSMC posted its largest-ever quarterly revenue in the second quarter. With Nvidia hitting another record high, some on Wall Street are now predicting it could be the first to reach a $5 trillion market capitalization.

Tesla jumped 4.73%, apparently due to its announcement of expanding its robotaxi service areas and plans to integrate the artificial intelligence (AI) service "Grok" into Tesla vehicles.

Delta Air Lines soared 11.99% after issuing third-quarter and full-year earnings guidance that exceeded market expectations. American Airlines Group also surged 12.72%, fueling a rally across the airline sector.

Meanwhile, the software sector declined without any particular negative news. Amazon, Microsoft, and Meta all showed weakness during the session. It appears that investors are shifting funds from AI and cloud-focused technology stocks to cyclical sectors such as energy and finance, which had previously underperformed.

On July 11, the domestic stock market is expected to see a tug-of-war over whether the KOSPI will break above the 3,200 level.

Kim Jiwon, a researcher at KB Securities, said, "As tariff concerns have peaked and the KOSPI has quickly approached the 3,200 level after settling above 3,100, it is necessary to consider the possibility of short-term profit-taking."

Lee Sunghoon, a researcher at Kiwoom Securities, commented on recent trends in the domestic stock market, stating, "While traditional leading sectors such as shipbuilding and defense are maintaining solid momentum, rotation into other sectors is also proceeding rapidly." He added, "It is worth noting that top-cap pharmaceutical and biotech stocks rebounded in both the KOSPI and KOSDAQ markets yesterday." He continued, "Last month, healthcare was one of the most neglected sectors on a monthly basis. Given the current rapid sector rotation in the market, now is the time to pay attention to healthcare stocks with individual earnings momentum as part of a catch-up strategy."