[Good Morning Market] New York Stocks Rebound... Growing Optimism for KOSPI Rise

The KOSPI is expected to rebound on the 27th, thanks to a turnaround in the New York stock market. By sector, differentiation among stocks is anticipated depending on individual issues.

Reuters Yonhap News

On the 26th (local time) at the New York Stock Exchange, the blue-chip-focused Dow Jones Industrial Average rose 135.6 points (0.3%) from the previous session to close at 45,418.07. The S&P 500 Index, which is centered on large-cap stocks, gained 26.62 points (0.41%) to finish at 6,465.94, while the tech-heavy Nasdaq Index climbed 94.978 points (0.44%) to end at 21,544.27.

The New York stock market closed higher despite attempts by U.S. President Donald Trump to shake up the Federal Reserve (Fed). President Trump tried to dismiss Fed Governor Lisa Cook. However, Cook responded with legal action, putting a brake on Trump’s efforts to take control of the Fed.

As a result, the market eased concerns over the Fed’s independence and shifted its attention to Nvidia’s earnings. Recently, there has been growing debate about a potential bubble in the artificial intelligence (AI) industry. Therefore, the details revealed in Nvidia’s earnings announcement are expected to become a key variable for the market.

Han Ji-young, a researcher at Kiwoom Securities, said, “Nvidia’s earnings will serve as an event to determine whether the AI industry is overheating,” adding, “At the same time, it will be a turning point to gauge whether Samsung Electronics or SK Hynix will have the upper hand in supply and demand ahead of the third-quarter earnings season.”

On this day, the domestic stock market is also expected to see individual stock-specific issues emerge as anticipation builds for Nvidia’s earnings.

The researcher said, “We expect a rebound, supported by a recovery in leading stocks such as shipbuilding and defense, which saw significant price declines due to supply and demand adjustments triggered by the MSCI rebalancing.” He added, “In terms of sectors, semiconductor stocks are likely to see a wait-and-see trend during the session as anticipation for Nvidia’s earnings grows. Other sectors are also expected to show differentiated movements among stocks depending on individual issues.”