New York Stock Market Hits Record Highs... Domestic Market Also Expected to Open Higher [Good Morning Market]

AI Momentum Offsets Iran-Driven Energy Shock

Market Led by a Handful of Major Blue-Chip Stocks

Barbell Strategy Remains Effective Alongside Holding Leading Stocks

Despite a surge in international oil prices due to concerns over a breakdown in negotiations between the United States and Iran, all three major indices on the New York Stock Exchange closed at record highs, buoyed by strength in technology stocks. The domestic stock market is also expected to open higher, reflecting the strong performance of semiconductor stocks and easing uncertainty over U.S.-Iran negotiations.

On the 1st, dealers are working in the dealing room at the Hana Bank headquarters in Seoul. Photo by Yonhap News Agency

On June 1 (local time), the Dow Jones Industrial Average closed at 51,078.88, up 46.42 points (0.09%) from the previous session. The S&P 500 index rose 19.90 points (0.26%) to close at 7,599.96, while the tech-heavy Nasdaq Composite Index ended trading at 27,086.81, up 114.19 points (0.42%) from the previous session.

Nvidia, the leading artificial intelligence (AI) chipmaker, surged 6.26%, driving the market higher. At the 'GTC Taipei' event held in Taiwan that day, Nvidia announced its entry into the AI laptop market by unveiling its first AI PC chip, the 'N1 X', developed in collaboration with Microsoft (MS). Dell Technologies, which announced it will use Nvidia's PC chips, rose 10.70%, and HP gained 9.20%. In contrast, Intel and Qualcomm fell 4.67% and 8.78%, respectively.

The software sector, which had been weak for some time, showed strong gains. Salesforce jumped 9.68%, ServiceNow climbed 9.24%, Intuit gained 6.71%, and Adobe rose 5.72%.

Investor sentiment rebounded after U.S. President Donald Trump mediated a ceasefire between Israel and Hezbollah and commented that talks with Iran to end the war are "progressing rapidly."

International oil prices soared during the day following reports from Iranian media that Iran would suspend peace talks with the United States in protest of Israel's attack on Lebanon. Brent crude futures settled at $94.98 per barrel, up 4.2% from the previous trading day, while West Texas Intermediate (WTI) futures closed at $92.16 per barrel, up 5.5%.

Meanwhile, the securities industry is focusing on the "polarization of returns" emerging between the KOSPI and KOSDAQ in the recent domestic bull market. According to Kiwoom Securities, from May to the present in June, the KOSPI soared 33.2%, while the KOSDAQ plunged 11.9%, marking an unprecedented decoupling. Polarization by market capitalization is also pronounced: while the KOSPI large-cap index surged 42.3%, the mid-cap (-6.7%) and small-cap (-14.0%) indices declined. In effect, only a handful of major sectors—such as semiconductors, IT hardware, consumer electronics, and automobiles—are driving the market upward. This is interpreted as a "narrative phase," where future growth stories, rather than fundamentals or macroeconomic indicators, are leading valuations.

On the other hand, some analysts point out that previously neglected blue-chip stocks now have a chance to recover returns based on attractive valuations. In May, the KOSPI's average daily trading value soared to 48.6 trillion won, a 68% increase from the previous month, but the securities sector's return was just -3.4%, far underperforming the KOSPI's 33.2% gain. Other sectors with significant declines despite improved earnings momentum—such as power equipment (-10.8%), shipbuilding (-11.4%), and department stores (-0.5%)—are also cited as being excessively neglected relative to their performance.

Ji-Young Han, a researcher at Kiwoom Securities, said, "A strategy of holding leading stocks remains valid even during a period of increased volatility," adding, "It is also worth considering a barbell strategy of gradually buying fundamentally sound but previously neglected stocks."

This content was produced with the assistance of AI translation services.