Will KOSPI Challenge 7,000 Again?... Renewed Attempt Fueled by Semiconductor Momentum from New York

Moves to Reopen Hormuz Drive New York Markets to Record Highs

Philadelphia Semiconductor Index Soars, SK hynix ADR Up 8%

Potential for Sideways Trading as KOSPI Reaches 7,000 and Selling Emerges

As the KOSPI surged by over 4% on a wave of positive momentum from the U.S., triggering an intraday buy-sidecar, employees at the dealing room of the Hana Bank headquarters in Jung-gu, Seoul, are monitoring the stock market and exchange rates. As of 9:02 a.m. on the same day, the KOSPI had risen 263.27 points (4.14%) from the previous close to 6,622.22, extending its gains. August 5, 2026 Photo by Jo Yongjun

The stock market rebounded as news emerged that negotiations between the United States and Iran over passage through the Strait of Hormuz had made progress, and as Palantir, an artificial intelligence (AI)-based data analytics company, delivered strong results. In the securities industry, there is growing optimism that the KOSPI could recover to the 7,000-point level this month, fueled by renewed investor appetite for risky assets centered on semiconductors.

Hopes for Hormuz Reopening and Demand for AI Data Centers Drive Market Up

As of 10:01 a.m. on August 5, 2026, the KOSPI was trading at 6,591.78, up 3.66% from the previous trading day. The KOSPI soared nearly 5% in early trading, which triggered a buy-sidecar (order halt) at around 9:24 a.m. The KOSDAQ opened the day at 794.93, up 1.82%, and extended gains to trade at 796.32, up 2.01% as of 10:02 a.m.

The domestic market was buoyed by gains in the New York Stock Exchange, attributed to reports of progress in ceasefire talks between the United States and Iran. Overnight, the Dow Jones Industrial Average and the S&P 500 each rose 1.71% and 1.79%, both hitting all-time highs, while the Nasdaq Composite Index climbed 2.59%. The Philadelphia Semiconductor Index jumped 6.55% thanks to strong performances from semiconductor stocks such as Nvidia (up 2.56%), Micron (up 7.62%), and Intel (up 10.84%). SK hynix's American Depositary Receipts (ADR) also soared by 8.17% as major Wall Street financial institutions released optimistic analyst reports recommending overweight positions in the stock.

U.S. Treasury Secretary Scott Bessent commented that "there could be an agreement to reopen the Strait of Hormuz either today or tomorrow, bringing this conflict to a more normalized phase," which the market interpreted positively. International oil prices also fell, with the September West Texas Intermediate (WTI) futures closing at $75.77 per barrel, down 5.7% from the previous close.

Analysts noted that Palantir's stellar results, alongside a report from a Taiwanese IT media outlet about memory chip sellouts in 2027, boosted investor sentiment for semiconductor stocks. On the previous day, Palantir announced that its second-quarter revenue reached approximately 2.77 trillion won, a 93% increase year-on-year. As a result, Palantir shares soared 29.45%. Jiyeong Han, a researcher at Kiwoom Securities, remarked, "Palantir’s explosive growth proves that the expansion of data centers is translating into real revenue through cloud market growth and the extension of AI software contracts, demonstrating that AI demand is materializing into actual sales."

Shares of semiconductor stocks are also propelling the Korean market upward. As of 10:03 a.m. on the same day, Samsung Electronics was trading at 246,000 won, an increase of 2.50% from the previous close, while SK hynix was up 4.82% at 1,653,000 won. Most of the other large-cap stocks were also rising, including SK Square (up 4.72%), Samsung Electro-Mechanics (up 9.45%), Hyundai Motor (up 2.80%), LG Energy Solution (up 2.59%), and Samsung Biologics (up 1.69%).

Suh Sangduk, a researcher at Mirae Asset Securities, explained, "Following reports that most D-RAM and high-bandwidth memory (HBM) inventory for 2027 has already been pre-sold, related semiconductor companies saw sharp gains led by memory stocks, propelling the indices higher."

Challenge to Break Through 7,000 Points ... Some See Possibility of Sideways Trading Due to Individual Investors’ Loss-Cutting Sales

With semiconductor investor sentiment recovering to some extent and concentration effects easing, there is an outlook that the KOSPI may once again challenge the 7,000-point mark.

One analyst commented, "Currently, as overall risk appetite improves in the stock market, we are seeing less of the previous trend of heavy concentration in semiconductor stocks, with positive momentum now spreading across various sectors. This broadening of returns, rather than sector-specific dominance, is expected to drive the recovery of the index." The analyst went on to set the upper target for the KOSPI in August at 7,800 points.

There are also suggestions that the market could enter a period of consolidation following this short-term rebound. Jaeseung Kim, a researcher at Hyundai Motor Securities, forecast, "While the domestic market may continue to recover following the sharp decline, it will be difficult to expect the steep upward momentum witnessed in May and June." He also analyzed, "Net buying by individual investors has been concentrated at the 7,000-8,500 point range, so once the KOSPI enters the 7,000-point territory, we may see steady loss-cutting and exit sales from individuals due to weakening investment narratives."

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