The U.S. stock market rebounded strongly on September 18, driven by semiconductor and artificial intelligence (AI) stocks, leading to expectations of a higher opening for the domestic market. With the U.S. 10-year Treasury yield falling below 5% and international oil prices continuing to decline, the pressure on the market is easing, which is expected to improve investor sentiment, particularly in semiconductor stocks.
On September 17 (local time), the three major indices on the New York Stock Exchange rose across the board. The Dow Jones Industrial Average increased by 0.61%, while the S&P 500 and Nasdaq Composite rose by 1.14% and 1.69%, respectively.
Semiconductor and AI stocks led the gains. Micron surged by 5.50%, and SK Hynix's American Depositary Receipts (ADRs) rose by 4.64%. Nvidia also climbed by 2.54%, contributing to a 3.14% increase in the Philadelphia Semiconductor Index.
U.S. Treasury yields showed signs of stability. Following the Bank of England's decision to hold its benchmark interest rate at 3.75%, European bond yields fell, leading to a decline in U.S. Treasury yields. The U.S. 10-year Treasury yield, which briefly exceeded 5% in the previous session, dropped to around 4.9%.
International oil prices continued to decline. Concerns over supply disruptions from Saudi Arabia eased somewhat, with November Brent crude futures closing at $104.82 per barrel, down 0.95% from the previous session. October West Texas Intermediate (WTI) futures also fell by 0.51% to $101.91 per barrel.
Seo Sang-young, a researcher at Mirae Asset Securities, stated, "The U.S. stock market rose as it absorbed the hawkish results from the recent Federal Open Market Committee (FOMC) meeting, alongside falling international oil prices and Treasury yields. In particular, semiconductor and AI stocks, which had been sluggish due to recent calls for a slowdown in AI development, led the gains."
In the domestic market, the strength of U.S. semiconductor stocks is expected to continue to boost large-cap related stocks. In the NXT pre-market, major stocks, including semiconductor companies, are showing strong performance. As of 8:30 a.m., Samsung Electronics is up 2.97% compared to the previous session. SK Hynix has risen by 3.38%, SK Square by 3.27%, Samsung Electro-Mechanics by 3.98%, and LG Energy Solution by 1.51%.
Today, the Bank of Japan (BOJ) is expected to hold a monetary policy meeting where an interest rate hike is anticipated. However, the market believes that the possibility of a hike has already been largely priced in, so attention will focus more on the future path of additional rate increases, comments from BOJ Governor Kazuo Ueda, and movements in the yen.
Han Ji-young, a researcher at Kiwoom Securities, analyzed, "The domestic market is expected to show an upward trend as it digests the BOJ meeting while benefiting from the rebound in the U.S. stock market, particularly in semiconductor stocks, following the stabilization of the U.S. 10-year Treasury yield and a 2.9% rise in KOSPI night futures after the September FOMC."
* This article has been translated by AI.
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