[Good Morning Stock Market] Nasdaq Successfully Turns Up This Year... Will the Domestic Market Smile Too?

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] The New York stock market successfully rebounded thanks to the strength of technology stocks. The Nasdaq index, which is centered on technology stocks, has fully recovered its losses for the year and reversed to an upward trend. On the 7th (local time), the Nasdaq closed at 8,979.66, up 125.27 points (1.41%) from the previous session.

The Nasdaq has fully recovered losses caused by the novel coronavirus disease (COVID-19) and achieved a 0.1% gain for the year. Other major indices in the New York stock market also turned upward in unison. The Dow Jones Industrial Average rose 211.25 points (0.89%) to 23,875.89, and the Standard & Poor's (S&P) 500 index increased 32.77 points (1.15%) to 2,881.19.

However, despite the global stock market's upward trend, there is analysis that the domestic market's rise may be somewhat curtailed due to profit-taking selling.

◆ Seo Sangyoung, Kiwoom Securities Researcher = The U.S. stock market showed a tendency to partially give back gains by releasing profit-taking selling at the end of trading for three consecutive days. Although the market is generally maintaining its bullish trend, the fact that it appears physically weak to continue this upward momentum is a burden on the domestic stock market as well.

Also, ongoing employment instability may slow the pace of economic recovery, which is expected to lead to foreign investors' selling. Furthermore, among the factors driving the U.S. stock market's rise, the favorable earnings of individual companies and China's export improvements were already reflected in the Korean stock market the previous day, which is also a burden. The domestic stock market is expected to start higher but give back gains on this day.

◆ Moon Namjung, Daishin Securities Researcher = The global stock market (FTSE) has been attempting to rise since May, using the resumption of economic normalization as momentum, but the upward momentum is slowing. The market fatigue has increased after a nearly 24.3% rebound from the low point (March 23), and President Trump's sharpened stance toward China has surfaced in May, dampening investor sentiment.

◆ Ha Inhwan, Meritz Securities Researcher = Attention should be paid to the Korean New Deal promotion direction announced by the government on the 7th. More important than the stock price rise is the fact that despite continuous foreign investor outflows from the Korean stock market, there has recently been a net buying shift in the 'software' sector.

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