New York stock markets closed higher following SK Hynix's debut on Nasdaq and optimism surrounding AI semiconductors. However, renewed military tensions between the U.S. and Iran over the weekend have heightened anxiety in global financial markets. With international oil prices soaring, a strong dollar, and rising U.S. Treasury yields, domestic markets are expected to focus on potential bottom-fishing after a semiconductor slump and the evolving Middle East risks.
According to the financial investment industry on July 10 (local time), the Dow Jones Industrial Average rose by 149.60 points (0.29%) to close at 52,637.01. The S&P 500 and Nasdaq also saw increases of 0.42% and 0.29%, respectively.
Notably, SK Hynix's American Depositary Receipts (ADRs), which began trading on July 10, opened at $170, above the offering price of $149, and finished at $168.49, marking a 13.08% increase. Nvidia rose 4.03% amid expectations for AI semiconductor demand, while Meta surged 5.97% due to positive feedback on its new AI models and expectations for its own AI semiconductor development.
However, the resurgence of military conflict between the U.S. and Iran has raised concerns about investor sentiment. While there were initial hopes for dialogue between the two nations, Iran's attacks on vessels in the Strait of Hormuz and subsequent U.S. airstrikes have increased geopolitical uncertainty.
As a result, the dollar is currently strong, and international oil prices have surged nearly 4%. In after-hours trading, both the Nasdaq 100 and Germany's DAX index showed weakness, while Japan's Nikkei index is also under pressure.
The domestic market's rebound is crucial following a sharp decline last week driven by profit-taking in the semiconductor sector. The KOSPI fell 7.6% on a weekly basis and 14.67% monthly, reflecting a significant underperformance compared to global markets.
Lee Kyung-min, a researcher at Daishin Securities, stated, "The recent drop in the KOSPI is more influenced by supply and demand shocks due to weakened expectations for the AI industry, valuation adjustments, and leveraged liquidations rather than fundamental damage. The forward EPS has actually improved, and the current 12-month forward price-to-earnings ratio (PER) stands at 6.36, which is historically low."
He added, "Whether the KOSPI can break through and stabilize above the 8,200 level will determine its short-term direction. If it recovers above 8,200, there is a possibility of a rapid rebound into the 10,000 range, but failure to stabilize could lead to a drop below 7,000."
Market participants are closely watching the U.S. Consumer Price Index (CPI) for June and the second-quarter earnings forecasts of major domestic companies, which are expected to influence market direction. In particular, if uncertainties surrounding the AI sector ease ahead of earnings reports from semiconductor companies like Samsung Electronics and SK Hynix, there may be potential for a rebound in oversold stocks.
In pre-market trading, major domestic stocks showed mixed trends. As of 8:31 a.m., SK Hynix was trading at 2,144,000 won, down 1.65% despite its Nasdaq ADR debut. SK Square also fell by 1.92%. In contrast, LG Energy Solution rose by 1.53%, while KB Financial (1.30%), Kia (0.54%), and Hyundai Motor (0.44%) showed strength. Samsung Electronics remained stable at 285,000 won, unchanged from the previous day.
* This article has been translated by AI.
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