U.S. and Iran military tensions have escalated, leading to a mixed close on Wall Street. However, a late rebound in U.S. semiconductor stocks and strong performance from major semiconductor firms in the domestic pre-market have raised expectations for bargain buying in the KOSPI on July 9.
On July 8, the Dow Jones Industrial Average closed down 576.76 points (1.09%) at 52,348.39. The S&P 500 index fell 21.14 points (0.28%) to 7,482.71, while the tech-heavy Nasdaq gained 51.96 points (0.20%) to finish at 25,870.65.
Investors are closely monitoring the situation in the Middle East. President Donald Trump indicated that negotiations for a ceasefire with Iran have effectively ended, suggesting the possibility of further military action, which has dampened investor sentiment. However, late in the session, bargain buying in semiconductor stocks helped mitigate losses.
Among individual stocks, NVIDIA rose 3.65%, and Apple increased by 0.88%. In contrast, Microsoft fell 1.41%, Meta dropped 2.02%, and Tesla declined by 2.19%.
International oil prices surged as geopolitical risks in the Middle East resurfaced. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for August delivery rose $3.08 (4.37%) to close at $73.52 per barrel. Meanwhile, Brent crude for September delivery increased by $3.86 (5.2%) to $78.02 per barrel on the London ICE Futures Exchange.
Despite the geopolitical tensions, the domestic market may recover from recent declines, buoyed by the rebound in U.S. semiconductor stocks and the attractiveness of prices following recent drops.
As of 8:49 a.m., in the NXT pre-market, Samsung Electronics was up 3.60%, and SK Hynix rose 5.83%. Other major stocks, including SK Square (3.94%), Samsung Electro-Mechanics (3.52%), and LG Energy Solution (1.11%), also showed strong gains.
Market analysts noted that while geopolitical risks may increase short-term volatility, investor focus is shifting back to semiconductor industry trends and the upcoming earnings season.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Despite concerns over the halt of U.S.-Iran ceasefire negotiations, the rebound in U.S. semiconductor stocks, the strength of KOSPI 200 night futures, and the perception of excessive declines over the past three trading days will provide incentives for bargain buying. The recent series of declines has been more influenced by supply-demand dynamics and investor sentiment rather than fundamental deterioration, so it is advisable to focus on gradual buying in sectors that have seen excessive declines, such as semiconductors, MLCCs, power equipment, and securities."
* This article has been translated by AI.
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