[Good Morning Market] New York Falls on AI Caution... Domestic Market Eyes Rebound

The New York Stock Exchange declined amid growing caution over artificial intelligence (AI). On December 16, the domestic stock market is expected to attempt a rebound, driven by bargain hunting following the sharp decline the previous day.

Reuters Yonhap News

On December 15 (local time), the Dow Jones Industrial Average, which focuses on blue-chip stocks, closed at 48,416.56, down 41.49 points (0.09%) from the previous trading day. The S&P 500 Index, which tracks large-cap stocks, fell by 10.9 points (0.16%) to 6,816.51, while the tech-heavy Nasdaq Index dropped by 137.757 points (0.59%) to 23,057.413.

Concerns over AI investments persisted. Broadcom declined for the third consecutive trading session. In addition, Apple (-1.5%), Alphabet (-0.4%), Microsoft (-0.8%), and Amazon (-1.6%) also weakened, indicating that worries about AI investments are spreading across the technology sector as a whole.

However, the securities industry believes that this decline is excessive. While Broadcom continued to fall, Nvidia rose by 0.7%, and Micron's decline was limited to 1.5%. Jiyeong Han, a researcher at Kiwoom Securities, explained, "At this point, rather than betting on the departure of leading AI stocks, it is appropriate to base the outlook on the gradual recovery of the AI narrative as the Micron earnings event scheduled for December 18 approaches."

The domestic stock market is expected to rebound today. This is because the decline in the U.S. market was limited, and there is a possibility of bargain hunting. The researcher noted, "The limited decline in the U.S. market and the inflow of bargain hunting into large-cap stocks such as domestic semiconductors are likely to support a rebound at the start of trading."

However, a differentiated trend by sector is expected. He emphasized, "During the session, overall index movement is likely to stagnate due to caution over U.S. November employment data and after-hours price changes in U.S. AI stocks. As a result, sector differentiation will intensify, especially in industries with individual issues such as defense, autonomous driving, and robotics."

This content was produced with the assistance of AI translation services.