[Good Morning Market] KOSPI Expected to Open Higher on Nvidia's 'Earnings Surprise'

On November 20, the Korean stock market is expected to open higher, reflecting positive news from the United States such as Nvidia's strong earnings, with gains centered around themes related to artificial intelligence (AI) semiconductors, data centers, and power facilities.

On November 19 (local time) in the New York stock market, the Dow Jones Industrial Average closed at 46,138.77, up 47.03 points (0.10%) from the previous session. The S&P 500 Index rose by 24.84 points (0.38%) to 6,642.16, and the tech-heavy Nasdaq Index gained 131.38 points (0.59%) to finish at 22,564.23. The Russell 2000 Index, which focuses on small and mid-cap stocks, also increased by 0.12%. The Philadelphia Semiconductor Index rose by 1.82%.

On this day, investors' attention was focused on Nvidia's earnings. Nvidia rose by 2.85% ahead of its fiscal third quarter (August to October) earnings announcement. After the market closed, the company reported an earnings surprise that exceeded market expectations, leading to an additional gain of over 5% in after-hours trading. Nvidia recorded its highest-ever revenue at $57.006 billion, representing a 62% increase compared to the same period last year.

Alphabet, Google's parent company, also hit a record high, closing at $292.99 per share, up 2.82% from the previous day, driven by expectations for its next-generation AI model, Gemini 3.

On the other hand, concerns about the U.S. consumer economy persisted. Target fell by 2.77% after reporting a decline in third-quarter sales and lowering the upper end of its annual profit outlook. Other consumer-related companies, such as eBay and Home Depot, also posted disappointing results, indicating that a "recessionary consumption pattern" has become entrenched.

The minutes from the Federal Open Market Committee (FOMC) released on this day dampened market expectations for a rate cut. Several members suggested that "it would be appropriate not to change the target range for the remainder of the year" depending on the economic outlook, confirming that the likelihood of a rate freeze in December has increased. According to CME FedWatch, the market is pricing in a 66.2% probability that the benchmark interest rate will be kept unchanged at the December FOMC meeting, a significant rise from 49.9% the previous day.

Nvidia's strong earnings and the resulting after-hours gains in major AI technology stocks are expected to have a positive impact on the share prices of related technology stocks in Korea today. Lee Sunghoon, a researcher at Kiwoom Securities, analyzed, "Given that the profit cycle of listed companies in Korea is still ongoing, the upward momentum for the domestic stock market remains valid despite the short-term correction."