The U.S. stock market closed higher, driven by gains in artificial intelligence (AI) semiconductor stocks. However, the domestic market is expected to experience increased volatility due to Samsung Electronics' second-quarter earnings announcement and profit-taking sentiment following recent gains.
On July 6, the Dow Jones Industrial Average rose by 155.84 points (0.29%) to close at 53,055.91. This marks the first time the Dow has closed above 53,000. The S&P 500 index increased by 54.19 points (0.72%) to finish at 7,537.43, while the tech-heavy Nasdaq composite gained 288.49 points (1.12%) to end at 26,121.16.
AI semiconductor stocks led the rebound after a recent correction. Broadcom rose by 3.73%, while Nvidia increased by 0.37%, Micron by 0.96%, and Intel by 1.54%. Meta surged by 2.98%, and Tesla jumped by 6.69%, boosting investor sentiment in tech stocks.
International oil prices fell as Saudi Arabia reduced crude oil prices for Asia and the Organization of the Petroleum Exporting Countries (OPEC) Plus decided to increase production by 188,000 barrels per day starting in August, reflecting expectations of increased supply. West Texas Intermediate (WTI) crude for August delivery settled at $68.55 per barrel, down 0.2%, while Brent crude fell 0.18% to $71.99 per barrel.
Despite the strength in U.S. markets, the domestic market is anticipated to focus on investor sentiment and profit-taking following Samsung Electronics' earnings announcement.
Samsung's preliminary operating profit for the second quarter was reported at 89.4 trillion won, exceeding market expectations of 85 trillion won. However, some analysts had anticipated profits exceeding 90 trillion won, raising the possibility of profit-taking following the announcement.
As of 8:49 a.m., Samsung Electronics was down 3.77% in the NXT pre-market, while SK Hynix fell 2.56%. Other major stocks, including SK Square (-2.07%), Hyundai Motor (-1.99%), Samsung Electro-Mechanics (-1.97%), Samsung Life Insurance (-2.54%), Samsung C&T (-2.45%), Samsung Biologics (-1.00%), and Kia (-1.18%), also showed declines.
Market analysts have identified semiconductor investment sentiment, Samsung's earnings, and the listing of SK Hynix's American Depositary Receipts (ADRs) as key factors for the market this week.
Han Ji-young, a researcher at Kiwoom Securities, stated, "This week, changes in semiconductor investment sentiment and the sustainability of sector rotation will be the market's primary focus. While macro events such as the June Federal Open Market Committee (FOMC) minutes are scheduled, the events that will influence market direction and volatility will be Samsung's preliminary earnings and the listing of SK Hynix's ADRs."
She added, "The favorable external environment, including the strength of the U.S. stock market and easing oil price pressures, is positive. However, the key short-term point of interest will be whether there will be sell-on news after Samsung's preliminary earnings and whether there will be follow-up buying due to alleviated concerns about the industry. This week, the recovery of profit momentum centered on semiconductors will determine the strength of the domestic market's rebound."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.