[Good Morning Market] Korean Volatility Expected to Rise Amid Mixed U.S. Stock Performance

Individual Burden Factors for Major Big Tech Stocks

Mixed Trend Due to Weak Oil Prices

Both Upward and Downward Factors Present in Korea

The U.S. stock market closed mixed, reflecting weakness in major big tech companies and a decline in oil prices due to progress in U.S.-Iran negotiations. The Korean stock market is expected to start with a slight upward movement as both upward and downward factors are present, but volatility in supply and demand is likely to increase.

On the 22nd (local time) in the New York stock market, the Dow Jones Industrial Average closed at 51,712.71, up 148.01 points (0.29%) from the previous session. The S&P 500 fell by 27.79 points (0.37%) to 7,472.79, while the Nasdaq Composite dropped 351.33 points (1.33%) to 26,166.60. The U.S. stock market opened weak due to individual concerns affecting major big tech companies such as Alphabet (-5.1%), SpaceX (-16.4%), and Amazon (-4.8%). Later, progress in negotiations between the U.S. and Iran led to a drop in oil prices, which in turn caused a rotation into cyclical stocks, ending the session mixed.

On the 22nd, the KOSPI index opened at 8,954.43, down 97.99 points from the previous trading day, and the current status of the domestic stock market was displayed on the electronic board in the dealing room of Hana Bank's headquarters in Jung-gu, Seoul. 2026.6.22 Photo by Jinhyung Kang

The funding burden on big tech firms is limiting the upside of their stock prices. Ji Young Han, a researcher at Kiwoom Securities, stated, "Since June, a series of macroeconomic events, including U.S. May employment data, the May Consumer Price Index (CPI), and the June Federal Open Market Committee (FOMC), have kept the 10-year U.S. Treasury yield in the 4.4-4.5% range, showing strong downside rigidity." Han added, "The sharp 5% drop in Alphabet's stock the previous day appears to reflect not only the departure of key talent to competitors, but also concerns about funding, and news of SpaceX issuing USD 20 billion in corporate bonds also had an impact." As a result, Han expects continued interest rate pressure on major growth stocks—such as big tech, biotech, and small-cap stocks—both domestically and internationally for the time being. However, Han noted that the recent rise in market interest rates was mainly due to concerns over energy inflation, and that the ceasefire between the U.S. and Iran, leading to a decline in oil prices, could help mitigate interest rate pressure.

For the Korean stock market, the weak performance of U.S. big tech stocks and interest rate pressure serve as downward factors, while the strong performance of the Philadelphia Semiconductor Index (up more than 2%) and falling oil prices act as upward factors, making a mixed trend likely. Han commented, "After a slight upward start, additional upward momentum during the session is expected to be limited, and volatility in supply and demand will likely increase due to competition among the top market cap stocks."

Regarding the recent event where SK hynix's market capitalization overtook that of Samsung Electronics, Han addressed concerns that the stock market may be peaking, suggesting such worries may be unfounded. "It is more meaningful to distinguish whether the rise in stock prices was driven by valuation overheating or earnings upgrades," Han explained. "The fact that SK hynix had more favorable short-term catalysts than Samsung Electronics attracted market attention to SK hynix. Rather than viewing this as a sign of excessive overheating and a market peak, it is more appropriate to focus on the potential for further gains in the KOSPI, especially centered around the semiconductor sector," Han said.

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