[Good Morning Market] US Stock Rally Driven by Semiconductor Surge... Korea Also Expected to Rebound

After Big Tech Earnings Announcements
AI Industry Concerns and Supply-Demand Pressure Ease
"Boosted by KOSPI Night Futures Hitting Upper Limit"

The U.S. stock market closed higher, alleviating concerns about the artificial intelligence (AI) industry amid strong earnings reports. The Korean stock market is also expected to rebound, with the KOSPI200 night futures hitting the upper limit.

On July 30 local time, at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average ended the session at 52,208.06, up 613.92 points (1.19%) from the previous trading day. The S&P 500, which focuses on large-cap stocks, gained 121.48 points (1.66%) to close at 7,437.63, while the tech-heavy Nasdaq rose by 679.24 points (2.78%) to 25,122.18.

Earnings releases by major U.S. big tech companies eased anxieties surrounding the AI sector. Microsoft demonstrated profitability with strong Azure cloud growth and healthy cash flow, while Meta delivered solid results in its core advertising business. Amazon, which reported its results after the market closed, showed a positive earnings and revenue surprise, and although its cash flow weakened, it projected strong AI demand through 2028.

On the 30th, the KOSPI index opened at 5681.77, up 18.53 points from the previous trading day. The current status of the domestic stock market is displayed on the electronic board in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. 2026.7.30 Photo by Jin-Hyung Kang

Expectations that deleveraging pressure from large hedge funds exiting tech stocks has eased also played a role. As a result, Micron surged by 18.4%, and SanDisk soared by 26%. The Situational Awareness Capital fund, founded by OpenAI alumnus Leopold, placed large leveraged bets—four times leverage—on AI and semiconductor leading stocks, but faced margin call pressures as share prices adjusted. In response, the hedge fund Citadel took over most of their portfolio. Jiyoung Han, a researcher at Kiwoom Securities, said, “The liquidation of the Leopold fund indicates that deleveraging is in its final stages,” and added, “At this point, the possibility of continued price and supply-demand distortions in leading stocks due to further deleveraging is low.”

The Korean stock market is expected to rebound on the back of relief over semiconductor deleveraging, Amazon’s extraordinary after-hours share price surge of over 9% following its earnings surprise, and the KOSPI200 night futures reaching their upper limit (up 8%).

The researcher also stated that this week’s sharp declines have significantly reduced the market impact of leveraged single-stock products. Additionally, the trend of increased second-quarter capital expenditures (CAPEX) by big techs (such as Microsoft, Meta, and Amazon) and improved KOSPI earnings visibility for leading stocks through Samsung Electronics' conference call are considered positive factors. He said, “When considering the possibility of a conclusion to semiconductor deleveraging by global leveraged funds and the view that share prices and valuations have excessively declined compared to historical levels, the market is entering a phase where upward momentum is gaining the upper hand.”

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