On August 4, the KOSPI is expected to rebound, buoyed by the previous day's gains in the U.S. stock market and easing tensions in the Middle East.
On August 3, all three major U.S. stock indices closed higher. The Dow Jones Industrial Average rose by 693.38 points (1.32%) to finish at 53,178.41, marking a record closing high. The S&P 500 increased by 110.78 points (1.48%) to close at 7,600.50, while the Nasdaq Composite gained 540.04 points (2.13%) to end at 25,913.90.
Investor sentiment was lifted by expectations of reduced military tensions in the Middle East after President Donald Trump announced a postponement of additional airstrikes against Iran.
Notably, technology stocks, particularly in the semiconductor sector, led the market rally. Meta surged by 6.02%, Alphabet rose by 4.88%, and Microsoft increased by 4.93%. Amazon jumped 4.58%, reaching a new all-time high, following a strong second-quarter earnings report that exceeded market expectations, driven by growth in its cloud business (AWS) and increased demand for AI.
Han Ji-young, a researcher at Kiwoom Securities, stated, "The validation of AI monetization through software will serve as a positive factor for the domestic market." This has raised expectations for a rebound in semiconductor stocks in the domestic market.
According to the Korea Exchange, on August 3, the KOSPI closed at 6,257.45, down 338.00 points (5.12%) from the previous trading day. In the stock market, individual investors made a record net purchase of 4.6531 trillion won, but foreign and institutional investors sold a net 2.8429 trillion won and 1.9477 trillion won, respectively, pulling the index down.
One analyst noted, "There is a persistent perception of overselling following the sharp declines in July and the previous day." He added, "With the easing of oil prices and interest rates due to Trump's TACO policy, along with a rebound in U.S. semiconductor stocks, we expect a bullish trend to emerge." He also remarked, "While daily return volatility remains high, it is positive that we are moving away from a phase of declining profit momentum."
* This article has been translated by AI.
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