[Good Morning Stock Market] U.S. Stocks Rise on Stabilizing Treasury Yields and Dell Earnings Surprise... Korea Also Expected to Rebound

All Major U.S. Indices—S&P 500, Nasdaq, and Dow—Close Higher
Technical Buying Expected in Korea After Previous Day’s Steep Decline

U.S. stock markets strengthened as U.S. Treasury yields stabilized and artificial intelligence (AI) server provider Dell posted an earnings surprise. The domestic stock market is also expected to rebound.

The KOSPI index opened at 6,784.29, down 35.73 points from the previous trading day, with the status of the domestic stock market displayed on the electronic board in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul on the 1st. September 1, 2026. Photo by Jinhyung Kang

On the 2nd (local time), the Dow Jones Industrial Average closed at 53,061.95, up 295.07 points (0.56%) from the previous session. The S&P 500 gained 35.13 points (0.46%) to end at 7,666.60, and the Nasdaq Composite rose 118.05 points (0.45%) to close at 26,217.83.

Amid ongoing tensions between the U.S. and Iran, comments from the New York Federal Reserve president regarding easing inflation and weak private employment figures released by U.S. employment data firm Automatic Data Processing (ADP) contributed to the moderation of the surge in the 10-year U.S. Treasury yield. In addition, market expectations for increased AI server demand following Dell's (up 15.8%) earnings surprise appeared to have an impact on market performance.

On this day, the 10-year U.S. Treasury yield surged to the 4.81% range during trading—its highest level since November 2023—before dropping back to the 4.7% range. Jiyoung Han, a researcher at Kiwoom Securities, stated, "Given the ongoing expansion of fiscal deficits and increased Treasury issuance, as well as corporate bond issuance by big tech firms to secure funding for AI investments, we must accept prolonged high interest rates as the base scenario. Going forward, what matters for the stock market is not just the absolute level of interest rates, but the causes and speed of their increases. If accompanied by positive corporate earnings momentum, rising yields could become manageable."

In this context, Broadcom’s earnings surprise, announced after the market close, is also expected to have a positive effect on share prices. Broadcom exceeded market expectations in both sales and earnings per share (EPS), driven by its main business of AI semiconductors. While its sales guidance for the next quarter came in at $34.8 billion, slightly below the market consensus of $35 billion and caused a minor decline in after-hours trading, securities analysts noted that the overall results reaffirmed the strength of AI-driven demand.

On September 3, technical buying is anticipated to flow into the domestic stock market amid perceptions that the previous day's decline was excessive. In addition, stabilization in the surge of U.S. 10-year Treasury yields and positive news from the U.S. markets, such as Broadcom’s earnings surprise, are also expected to be reflected in the domestic markets.

Recently, despite positive disclosures from leading companies such as Samsung Electro-Mechanics, Doosan Fuel Cell, and Alteogen, the domestic market has seen a "sell-on-news" phenomenon, with share prices remaining weak. This appears to be due to already elevated expectations and a weakening of purchasing power among foreign and institutional investors. Rather than prompting new buying, these conditions have led existing shareholders to take profits.

One researcher commented, "The repeated sell-on-news phenomenon following positive announcements cannot be solely attributed to problems with individual company fundamentals. Instead, the main factor seems to be that, amid short-term macroeconomic uncertainty, the foundation for new buying—aside from share buybacks by Samsung Electronics and SK hynix—has temporarily weakened. The key issue is whether the overall supply-demand environment and market multiples will recover sufficiently for share prices to appropriately reflect individual positive factors again."

He added, "For this to happen, further stabilization in the U.S. long-term bond market and a drop in oil prices will be necessary. At this point, it is important to build on the baseline assumption that such conditions may gradually be met through the U.S. August jobs report to be released this week, the August Consumer Price Index (CPI) to be announced next week, and any signs of U.S.-Iran negotiations resuming."

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