[Good Morning Market] Will a "Black Monday" Follow the Plunge in U.S. Stocks?

S&P 500 falls over 2%, Nasdaq drops more than 4%

U.S. employment data doubles consensus, fueling rate hike concerns

"KOSPI support at 7,000 to be tested"

The U.S. stock market plunged, particularly among technology stocks, as strong employment data dampened investor sentiment. On June 8, the domestic stock market is also expected to experience turbulence throughout the week, driven by panic selling of semiconductor shares and heightened fear among investors.

On June 5 (local time), the Dow Jones Industrial Average closed at 50,866.78, down 695.15 points (1.35%) from the previous session. The S&P 500 Index fell by 200.57 points (2.64%) to 7,383.74, and the Nasdaq Composite ended the session at 25,709.43, dropping 1,121.53 points (4.18%).

With the KOSPI plummeting due to declines in US tech stocks and threatening the 8,000 level, and the won-dollar exchange rate continuing its high run, an employee is monitoring the stock market and exchange rates in the dealing room at Hana Bank headquarters in Jung-gu, Seoul on June 5, 2026. Photo by Jo Yongjun

Analysts attribute this negative turn in the markets to U.S. employment figures that far exceeded expectations. In May, the number of new hires in the U.S. reached 172,000, more than double the market forecast of 85,000. The robust employment data has reinforced expectations that the U.S. Federal Reserve will raise interest rates, further chilling investor sentiment. The yield on the 10-year U.S. Treasury surpassed the psychologically significant 4.5% level.

Additionally, the Philadelphia Semiconductor Index (SOX) fell by 10.26% compared to the previous session, marking the steepest drop since 2020, when the impact of COVID-19 was most severe. Semiconductor stocks such as Nvidia (-6.2%), Broadcom (-7.9%), AMD (-10.9%), Intel (-11.3%), SanDisk (-11.4%), and Micron (-13.2%) suffered sharp declines. As a result, there are signs that investors in Samsung Electronics and SK hynix, which have led the KOSPI rally, may join in the sell-off at the start of trading today.

The domestic stock market is also expected to face short-term declines due to the influence of the U.S. market. Kyungmin Lee, a researcher at Daishin Securities, stated, "We must be mindful of the possibility of the KOSPI testing support in the low 7,000-point range, or even temporarily falling below that level."

In addition, this week will see the listing of SpaceX, as well as the release of U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data, all of which could further unsettle market sentiment. Jiyoung Han, a researcher at Kiwoom Securities, commented, "If the CPI simply matches market expectations, it could curb the spread of the negative cycle of rising market interest rates, a stronger dollar, and a sharp increase in the won-dollar exchange rate." She also noted, "The simultaneous expiration of spot and futures options in the domestic market prior to the SpaceX listing may lead to temporary disruptions in market supply and demand."

There are also projections that the rotation of funds will continue in this environment, where semiconductor stocks are declining due to concerns over deteriorating AI profitability. Researcher Lee stated, "Previously overlooked sectors such as chemicals, energy, transportation, shipbuilding, media and education, consumer staples, construction, cosmetics, as well as domestic demand and financial stocks, may see a rebound." She added, "Last weekend, the U.S. stock market also saw a selective rebound in sectors such as personal products, insurance, food and beverages, healthcare equipment and services, utilities, real estate, transportation, consumer services, and pharmaceuticals and biotechnology."

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