[Good Morning Market] US Stocks Mixed as Micron Surges... KOSPI Also Rises

Tech Stocks Weaken on Wall Street,
Airline and Travel Shares Rally

Declining Oil Prices and Bond Yields Drive Markets

Micron’s Surprise Earnings Spark 14% After-Hours Surge

Positive Momentum Expected for Korean Stocks

The New York Stock Exchange showed mixed results. While technology stocks weakened, airline and travel-related stocks gained strength, helped by a sharp drop in international oil prices. Micron Technology, which had drawn significant market attention, surged in after-hours trading after announcing record-breaking earnings that far exceeded market expectations following the close of regular trading.

On June 24 (local time), at the New York Stock Exchange (NYSE), the S&P 500 Index closed at 7,358.22, down 0.10% from the previous day. The tech-heavy Nasdaq Index also finished regular trading down 0.43% at 25,476.64. The Dow Jones Industrial Average rose 0.35% from the previous session to close at 51,848.90.

Early in the session, the market showed an upward trend as bargain hunting emerged following the previous day's sharp decline. Seo Sangyoung, a researcher at Mirae Asset Securities, explained, "The drop in international oil prices, particularly due to increased traffic through the Strait of Hormuz, and the decline in Treasury yields as inflation concerns eased had a positive impact." He added, "However, renewed concerns about private credit lending and news of cash depletion due to hyperscalers’ capital expenditures fueled uncertainty and limited gains."

Of particular note, Oracle fell 4.67%, attracting attention. With its free cash flow turning into a large deficit, excessive spending and delayed profitability acted as burdens. There was also news that the North Haven Private Income Fund, a flagship private credit fund valued at 7 billion dollars, faced large redemption requests amounting to 11.6% in the second quarter this year, but Morgan Stanley accepted only 5%, which is the quarterly limit. The fact that software accounted for 22.7% of the fund’s portfolio is interpreted as fears that the weakening of software companies due to artificial intelligence (AI) may be spreading liquidity risks in the private lending market.

Nevertheless, the indices managed to remain resilient, largely due to the decline in international oil prices following the resumption of shipping through the Strait of Hormuz. Brent crude futures for August closed at $73.74 per barrel, down 4.33% from the previous session. West Texas Intermediate (WTI) crude for August also fell 3.92% to $70.34. This is close to levels seen before concerns over a military clash between the United States and Iran escalated. According to major US media, US President Donald Trump told reporters at the White House, "Iran’s imposition of tolls on traffic through the Strait of Hormuz is unacceptable," emphasizing, "So far, Iran has agreed to everything I want." However, President Trump also added that if the memorandum of understanding (MOU) for a ceasefire is not implemented, military action remains an option, leaving lingering concerns.

Micron, which had drawn significant attention, closed regular trading down 0.31% but soared more than 14% in after-hours trading following its earnings announcement. The company's earnings and next quarter outlook both handily beat market expectations, and its long-term contract structure was also described as solid. Sanjay Mehrotra, Micron's Chief Executive Officer (CEO), stated, "We expect the memory supply shortage to continue until the end of next year," adding, "Even if supply gradually improves from 2028, it is difficult to predict when demand will catch up with supply."

The Korean stock market is also expected to open higher amid falling international oil prices, declining US Treasury yields, and Micron’s strong earnings. The MSCI Korea Index ETF, which closely tracks the Korean market, rose 2.63%. In after-hours trading, it surged nearly 5%.

Han Jiyoung, a researcher at Kiwoom Securities, said, "While the positive momentum from Micron could lead to a concentration in semiconductor stocks, the overall market environment is improving as the economic burden from high oil prices is easing." He added, "Along with semiconductors, which are the leading sector, attention should also be paid to other industries attracting increased foreign investment since June."

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