On June 2, as all three major indices on the New York Stock Exchange reached record highs, South Korea's stock market is expected to open strong, driven by the semiconductor and information technology sectors. Nvidia's official entry into the artificial intelligence (AI) PC market has improved investor sentiment in the semiconductor and hardware sectors, while uncertainty surrounding negotiations between the U.S. and Iran has eased somewhat.
On June 1 (local time), the Dow Jones Industrial Average closed up 46.42 points (0.09%) at 51,078.88. The S&P 500 rose by 19.90 points (0.26%) to finish at 7,599.96, while the tech-heavy Nasdaq composite gained 114.19 points (0.42%), closing at 27,086.81.
Early in the trading session, concerns about a potential halt in U.S.-Iran negotiations led to rising international oil prices and interest rates. However, President Donald Trump denied the rumors of a negotiation breakdown, helping to restore investor confidence. Additionally, the U.S. Institute for Supply Management's (ISM) manufacturing purchasing managers' index (PMI) for May exceeded market expectations, allowing the market to recover from early losses and turn positive.
Market attention was focused on Nvidia, which announced its collaboration with Microsoft on the AI PC chip 'N1 X' at the 'GTC Taipei' event in Taiwan, marking its entry into the PC market. As a result, Nvidia's stock surged by 6.26%.
Expectations for AI PC benefits also boosted shares of Dell Technologies and HP, which rose by 10.70% and 9.20%, respectively. In contrast, established PC CPU market leaders Intel and Qualcomm saw declines of 4.67% and 8.78%, respectively.
Expectations for increased investment in AI infrastructure continued to grow. After the market closed, server and storage company HPE reported earnings and guidance that exceeded market expectations, leading to a surge in after-hours trading.
International oil prices rose, with Brent crude futures closing at $94.98 per barrel, up 4.2%, and West Texas Intermediate (WTI) crude futures finishing at $92.16 per barrel, a 5.5% increase. However, the earlier gains in oil prices were partially reversed following President Trump's comments regarding negotiations.
The South Korean stock market is expected to continue its upward trend, led by semiconductor stocks. As of 8:30 a.m. on June 2, shares of Samsung Electronics were trading at 373,500 won, up 7.02%. Hyundai Motor rose by 4.13%, SK Hynix increased by 1.18%, and LG Electronics showed a strong gain of 20.89%.
Analysts believe that expectations for increased AI investment remain a key driver for the market, but they caution about the potential for increased volatility due to concentration in certain sectors. Han Ji-young, a researcher at Kiwoom Securities, noted, "While confusion surrounding U.S.-Iran negotiations continues, the impact of war risks on the stock market is becoming limited over time. Nvidia's AI PC announcement and the growing demand for AI infrastructure are driving strength in the semiconductor and hardware sectors."
She added, "The South Korean stock market is expected to open higher, supported by strong semiconductor stocks, but recent trading has concentrated on a few leading stocks, increasing volatility. A strategy that includes leading stocks in semiconductors and IT hardware, along with sectors like securities, power equipment, and shipbuilding that have been overlooked relative to their earnings, is effective."
* This article has been translated by AI.
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