U.S. stocks reached all-time highs on October 6, buoyed by strong expectations for third-quarter earnings and a stabilization in Treasury yields, raising interest in whether the domestic market will also rebound. The positive sentiment from the strength of U.S. artificial intelligence (AI) infrastructure stocks and easing interest rate concerns is expected to influence investor sentiment. However, the KOSPI may face limited gains due to cautious trading ahead of Samsung Electronics' preliminary earnings report and concerns over an upcoming market closure.
On October 6, the Dow Jones Industrial Average rose by 0.49% on the New York Stock Exchange. The S&P 500 and Nasdaq Composite also increased by 0.58% and 0.45%, respectively, setting new record highs.
As the third-quarter earnings season begins next week, expectations for major companies' performance have grown, with U.S. Treasury yields and international oil prices showing signs of stabilization, which has strengthened the appetite for riskier assets.
Goldman Sachs forecasts that the earnings per share (EPS) for S&P 500 companies will increase by 27% compared to the same period last year, with AI infrastructure investment beneficiaries expected to account for more than half of the total earnings growth.
The yield on the 10-year U.S. Treasury note fell by 3 basis points to 5.281%. Analysts suggest that the decline in European bond yields has contributed to easing anxiety and stabilizing U.S. Treasury yields.
International oil prices saw a slight increase. December futures for Brent crude rose by 0.26% to $100.58 per barrel, while November futures for West Texas Intermediate (WTI) increased by 0.01% to $89.44 per barrel.
AI-related stocks also performed well. Marvell Technology rose by 5.81% after presenting a long-term growth outlook for AI, while Broadcom increased by 3.67%. Nvidia saw a nearly 2% intraday rise following an upgrade from BNP Paribas but later gave back most of those gains due to profit-taking.
Seo Sang-young, a researcher at Mirae Asset Securities, noted, "The stabilization of bond yields in European countries like France has contributed to easing anxiety. Additionally, Marvell's (+5.81%) long-term AI growth outlook presented at Investor Day has led to strong performance in customized chips, networking, and optical communication sectors, driving gains in technology stocks."
The domestic market is expected to attempt a rebound after recent declines. Han Ji-young, a researcher at Kiwoom Securities, stated, "Today, the domestic market is expected to open higher, supported by a favorable external environment with U.S. 10-year Treasury yields below 5.3% and reduced anxiety in the European bond market, alongside the strength of U.S. AI infrastructure stocks."
However, during the trading session, the cautious sentiment ahead of Samsung Electronics' preliminary earnings report and concerns over the market closure later in the week may limit the extent of any gains. As of 8:08 a.m., Samsung Electronics was down 0.74%, and SK Hynix was down 1.47% in the NXT pre-market.
One analyst remarked, "During the trading session, the cautious sentiment surrounding Samsung Electronics' preliminary earnings and concerns over the market closure later in the week may keep the market's upside limited, leading to a rotation among sectors."
* This article has been translated by AI.
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