[Good Morning Market] US Semiconductor Rally... KOSPI Aims to Regain 7,000 Mark

Semiconductors Rise Despite Weak US Stocks

"Firm Settlement Above 7,000 Possible if Export Growth is Confirmed"

Despite the weak closing of the US stock market, there are expectations that the KOSPI could settle above the 7,000 mark during the week on August 18, driven by the strong performance of semiconductor stocks.

On August 17 (local time), the Dow Jones Industrial Average ended at 53,459.78, down 0.51% from the previous session. The S&P 500 fell 0.52% to 7,745.06, while the Nasdaq Composite closed 0.32% lower at 26,644.91.

On the 14th, the KOSPI index recovered the 7,000 mark early in the session due to strong US technology stocks, with the domestic stock market status displayed on the electronic board in the Hana Bank dealing room in Jung-gu, Seoul. It is the first time in 15 trading days since the 24th of last month that the KOSPI index has exceeded the 7,000 mark during the session. August 14, 2026 Photo by Kang Jinhyung

It is believed that the stock market was affected by rising international oil prices following heightened tensions between the United States and Iran. U.S. President Donald Trump stated that he has no intention of extending the memorandum of understanding (MOU) for ending the conflict with Iran. As a result, West Texas Intermediate (WTI) crude oil rose 2.54%, closing at $84.50 per barrel.

However, semiconductor stocks were strong, with the Philadelphia Semiconductor Index increasing by 1.3%. Sandisk surged 8.88%, Micron gained 4.13%, and SK hynix ADR increased by 3.04%. Previously, on August 13, Sandisk released a positive outlook, projecting that demand for NAND flash in data centers would rise by 2030 due to expanding demand for artificial intelligence (AI) inference. Also, the partial resolution of concerns over AI profitability, as Anthropic reported robust second-quarter sales, contributed to the sector’s strength.

Some analysts believe this situation could drive gains in the domestic stock market. Han Ji-young, a researcher at Kiwoom Securities, explained, "During the holiday period, the strong performance of US semiconductor stocks such as Micron and Sandisk may serve as a driver for the domestic stock market in the early part of the week. However, looking at this week's schedule, unlike the first and second weeks of August, there are no major events, while macro uncertainties around rates and oil prices persist. Therefore, there is the possibility of profit-taking and pressure to moderate the pace after the initial rally at the start of the week."

However, the release of the July Federal Open Market Committee (FOMC) minutes on August 19 is not expected to have a significant impact on the market. Han noted, "If it turns out that even among US Federal Reserve officials who favored a rate pause in July, concerns about inflation have increased, it could act as a burden on the market. However, the July minutes do not reflect the July employment shock that was announced in August or the slowdown in the July Consumer Price Index (CPI). So, even if the minutes are more hawkish than expected, their impact on the stock market should be limited."

Attention is also on the export growth rate for August, up to the 20th. From August 1 to 10, the overall export growth rate was 155.4% for semiconductors, slowing from July’s 178.8%. Han emphasized, "While the momentum in export growth is indeed moderating, it is important to recognize that the absolute growth momentum remains solid, as evidenced by the 150% range of semiconductor export growth. If the resilience of August exports is reaffirmed, the domestic market is expected to absorb profit-taking during the week and attempt to firmly establish itself above the 7,000 mark, led by the semiconductor sector that joined the rebound late last week."

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