The U.S. stock market closed higher, buoyed by a decline in the Producer Price Index (PPI) and strong performances from major tech companies. However, with U.S. semiconductor stocks showing weakness and a sharp drop in SK Hynix's American Depositary Receipts (ADRs), domestic markets are expected to experience continued volatility, particularly in semiconductor shares.
On July 15, the Dow Jones Industrial Average rose by 150.37 points (0.29%) to close at 52,658.64. The S&P 500 gained 28.81 points (0.38%) to finish at 7,572.40, while the tech-heavy Nasdaq Composite increased by 162.22 points (0.62%) to end at 26,269.23.
The U.S. PPI for June fell by 0.3% compared to the previous month, falling short of market expectations and easing concerns about interest rate hikes. Strong earnings from major financial firms like BlackRock and Morgan Stanley also supported investor sentiment. Tech giants such as Apple (up 4.01%), Alphabet (up 3.60%), and Amazon (up 3.02%) contributed to the market's gains.
In contrast, semiconductor stocks faced declines. The Philadelphia Semiconductor Index dropped by 2.08%, and SK Hynix's ADR fell sharply by 9% after a previous surge. International oil prices also rose amid ongoing tensions between the U.S. and Iran, with West Texas Intermediate (WTI) crude oil increasing by 0.33% to $79.60 per barrel, and Brent crude rising by 0.26% to $84.95 per barrel.
Despite the rise in U.S. markets, domestic stocks are expected to be influenced by the adjustments in semiconductor shares.
As of 8:40 a.m., in the NXT pre-market, Samsung Electronics was down 5.5%, and SK Hynix fell 7.9%. SK Square (-8.4%) and Samsung Electro-Mechanics (-7.1%) also showed weakness, while HLB (up 12.3%) and Hanwha Ocean (up 6.4%) performed well.
Market analysts note that while the macro environment has improved due to easing inflation in the U.S., the supply-demand fluctuations and earnings events surrounding semiconductors will remain key variables for the market in the near term.
Han Ji-young, a researcher at Kiwoom Securities, stated, "The decline in the U.S. June inflation indicators has alleviated inflationary pressures, and the surge in SK Hynix's ADR along with forecasts of memory supply shortages signal positive trends for the semiconductor industry. However, variables such as ASML and TSMC's earnings and the normalization of leveraged supply must be confirmed, indicating that short-term supply volatility may continue."
He added, "Given that the domestic market has undergone significant adjustments beyond the financial crisis, the valuation burden has been greatly reduced. Therefore, rather than focusing on further corrections, it is essential to consider the potential for recovery. A strategy of gradually increasing positions in semiconductor and AI infrastructure-related stocks, which have seen the largest corrections, is advisable."
* This article has been translated by AI.
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