[Good Morning Stock Market] U.S. Semiconductor Stocks Rebound... Will South Korean Stocks Try to Recoup Losses?

Nasdaq Up 1.09%; Philadelphia Semiconductor Index Gains 4.21%
Strong Jobs Data Add to Rate and Dollar Pressures
Focus on U.S. CPI and CoreWeave Earnings

Domestic stock market data is displayed on an electronic board in the dealing room at Hana Bank's headquarters in Jung-gu, Seoul, on Nov. 6, 2026, after the KOSPI plunged more than 8% shortly after the market opened, triggering a circuit breaker. Photo by Kang Jinhyung.

U.S. stocks attracted bargain hunters in AI-related shares late last week, recovering some of their recent losses, led by semiconductor stocks. Attention is now focused on whether the KOSPI, which had fallen below the 5,000 level, will attempt a rebound on Nov. 9.

On Nov. 6 (local time), the S&P 500 rose 0.31% from the previous session to 7,376.86 on the New York Stock Exchange. The tech-heavy Nasdaq Composite gained 1.09% to 24,579.42. The Dow Jones Industrial Average, however, fell 0.46% from the previous session to 51,285.73.

Semiconductor stocks led the rebound. The Philadelphia Semiconductor Index rose 4.21%, while Nvidia (2.78%), AMD (11.04%), and Micron Technology (5.12%) also posted gains. The recovery in investor sentiment is seen as reflecting bargain hunting, driven by the view that the preceding sharp decline had been excessive.

Information technology (IT) led gains among sectors, while consumer staples and health care weakened. Meta (0.84%) and Alphabet (0.78%) rose, but some major technology stocks, including Apple (-0.52%), Microsoft (-0.99%), and Amazon (-0.35%), fell.

The rebound is seen as largely a bout of bargain hunting following the sharp decline. After the Democratic Party took control of both the House and the Senate in the U.S. midterm elections, concerns about tighter data center regulations intensified, sending the Nasdaq down 5.52% and the Philadelphia Semiconductor Index down 12.25% the previous day. Despite the rebound, the Nasdaq fell 3.37% for the week, extending its losing streak to four weeks. Market observers say the recent sharp decline in technology stocks was exacerbated by hedge funds reducing leverage, combined with mechanical selling by commodity trading advisers (CTAs) using trend-following strategies and leveraged exchange-traded funds (ETFs).

Some analysts say it is still too early to be reassured. Stronger-than-expected U.S. employment data could weigh on stocks. According to the U.S. Bureau of Labor Statistics, nonfarm payrolls increased by 165,000 in October from the previous month, while the unemployment rate fell to 4.1%. The stronger-than-expected employment figures brought the possibility of a Federal Reserve (Fed) rate hike in December into focus, and the yield on 10-year U.S. Treasury bonds rose to around 4.86%.

Attention is focused on how much the South Korean stock market will rebound after its record-breaking plunge. The KOSPI has fallen about 44.5% from the high it recorded on June 22. However, unless new macroeconomic or AI-related headwinds emerge, a chain of sharp declines like last week’s is not expected to recur.

There are also signs supporting a rebound in the South Korean market. The MSCI Korea ETF, which closely tracks the domestic market, rose 4.07%, and the Philadelphia Semiconductor Index also rebounded. Analysts say this could have a positive effect on investor sentiment toward stocks that suffered steep losses, including Samsung Electronics and SK hynix.

This week, the market will be watching the U.S. Consumer Price Index (CPI) for October, due on Nov. 10 (local time), and CoreWeave’s third-quarter earnings. Whether inflation will fuel concerns about further monetary tightening, and whether earnings and investment plans from AI infrastructure companies will ease concerns about slowing demand, are expected to determine whether the rebound can continue.

“Volatility is likely to increase as the market works through several major events amid the aftershocks of last week’s panic selling,” said Han Jiyoung, an analyst at Kiwoom Securities. “However, this is also a moment to remember that the KOSPI’s forward price-to-book ratio (PBR) has fallen to 0.95 times, its lowest level since July last year, making valuations increasingly attractive.”

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