[Good Morning Market] US Semiconductor Stocks Soar... "Korean Stock Market Expected to Remain Strong"

US CPI Meets Expectations: "Interest Rate Hike Pressure Eases"

"Warmth to Spread Beyond Semiconductors to Other Sectors"

With artificial intelligence (AI) and semiconductor stocks showing strength on the New York Stock Exchange in the United States, the Korean stock market is expected to continue its upward momentum on August 13, supported by relief stemming from easing concerns over U.S. interest rate increases and a sharp rise in semiconductor stocks.

On August 12 (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (Dow Jones) closed at 53,770.27, down 21.58 points (0.04%) from the previous session. The S&P 500 index, composed largely of blue-chip stocks, rose by 20.30 points (0.26%) to 7,748.50, while the technology-focused Nasdaq index finished up 143.04 points (0.54%) at 26,588.48.

On the 12th, the KOSPI and KOSDAQ indices are displayed on the electronic board in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Yonhap News

The market paid attention to the fact that the U.S. Consumer Price Index (CPI) for July increased by 3.4% year-on-year, in line with market expectations. As the inflation rate slowed from 4.2% in May to 3.5% in June, and then eased further in July, this reinforced the outlook that chances of another Federal Reserve (Fed) rate hike are decreasing.

By stock, CoreWeave and Super Micro Computer both soared after their recent quarterly earnings reports, rising 19.28% and 19.02%, respectively. Other AI-related stocks also performed strongly: Dell Technologies rose 9.87%, Micron Technology 4.92%, Cisco Systems 2.86%, SK hynix American Depository Receipts (ADR) 9.01%, and Nvidia 3.03%.

Ji Yong Han, a researcher at Kiwoom Securities, explained, "As we can see from the earnings of AI infrastructure companies, demand for AI is spreading beyond just GPUs (graphics processing units) to the entire core value chain, including cloud, power, and servers." He added, "This demonstrates that concerns about 'peak-out' in AI demand and a reduction in big tech investment, which were at the center of market instability, have been excessive."

Commenting on the Korean stock market, Han predicted, "Positive factors from the U.S. will not only benefit semiconductors but will also spread warmth to other sectors, resulting in a strong market trend."

He continued, "Securing friendly macroeconomic conditions, such as reduced concerns about the Fed’s September rate hike, is likely to contribute to improved foreign investor flows going forward. In this respect, it would also be an appropriate decision to engage in momentum plays not only in leading sectors like semiconductors, but also in industries such as IT home appliances, nonferrous metals and lumber, construction, and machinery, all of which have been among the top performers in terms of returns this month."

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