The U.S. stock market rose sharply, driven by gains in artificial intelligence (AI) technology stocks, while the South Korean market is expected to fluctuate around the 7000 mark, closely monitoring U.S. long-term interest rates and key economic indicators. The AI momentum is supporting the lower end of the market, with U.S. employment data and Micron's earnings being key variables influencing market direction this week.
On September 25, the Dow Jones Industrial Average closed up 478.64 points (0.93%) at 51,828.62. The S&P 500 rose 0.51% to finish at 7,743.41, while the tech-heavy Nasdaq Composite gained 0.48%, closing at 27,068.72.
AI-related tech stocks led the rally. Microsoft surged 3.7% after unveiling new features for its Copilot application, including coding tools and always-on AI agents. Qualcomm and Dell also saw increases of 4% and 5%, respectively. Akamai Technologies rose 3.2% following news of a $11.6 billion cloud services contract with AI firm Anthropic.
However, a sharp rise in Treasury yields limited the market's upside. The yield on the U.S. 10-year Treasury note reached 5.196%, the highest level since 2007, amid hawkish comments from the Federal Reserve, strong economic data, and elevated energy prices. The market is increasingly anticipating another rate hike in October.
On a positive note, the potential reopening of the Strait of Hormuz has contributed to a decline in international oil prices, which supported investor sentiment. West Texas Intermediate (WTI) crude fell 2.3% to $92.41 per barrel, while Brent crude dropped 2.1% to $104.32. Reports of discussions between the U.S. and Iran to gradually end hostilities also bolstered risk appetite.
The South Korean market showed early signs of differentiation among stocks. As of 8:07 a.m. on September 28, Samsung Electronics was down 0.18%, SK Hynix fell 1.29%, and SK Square dropped 1.34%. In contrast, Samsung Electro-Mechanics and Hyundai Motor rose by 0.86% and 1.27%, respectively.
Analysts expect the KOSPI to fluctuate around the 7000 level this week, influenced by U.S. long-term interest rates, key economic indicators, and Micron's earnings.
Han Ji-young, a researcher at Kiwoom Securities, projected the KOSPI's range for the week to be between 6800 and 7250 points. She noted, "This week, the KOSPI will be affected by changes in the U.S. stock market during the holiday period, the direction of the U.S. 10-year Treasury yield, September's non-farm payrolls, August's personal consumption expenditures (PCE), South Korea's September exports, and the U.S. September ISM manufacturing PMI, as well as changes in domestic semiconductor stock supply and demand following Micron's earnings."
Particularly, the U.S. September employment data is seen as a critical factor in determining market direction. Analysts expect new jobs in September to slow to 100,000, down from 162,000 in August. If employment growth aligns with market expectations, it could alleviate concerns about further tightening from the Fed and help control the recent rise in U.S. 10-year Treasury yields that have pressured the stock market.
In the semiconductor sector, Micron's earnings and South Korea's export figures are crucial. From September 1 to 20, South Korea's exports increased by 78.3% year-on-year, with semiconductor exports soaring by 259.4%. This data will help assess whether the growing demand for AI translates into increased semiconductor and equipment investment.
Han added, "This week, the stock market will face uncertainties surrounding the rise in U.S. long-term interest rates, but the recovery of AI infrastructure stocks, including semiconductor companies driven by AI agents, will provide upward momentum for the market."
She concluded, "The volatility that may arise from the convergence of major events such as Micron's earnings, export data, and employment figures later in the week could present opportunities for increasing stock holdings."
* This article has been translated by AI.
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