[Good Morning Stock Market] Focus on 'Infrastructure' and 'Metaverse'

[Asia Economy Reporter Junho Hwang] The U.S. stock market closed once again at an all-time high. The passage of the infrastructure bill and individual positive factors for specific stocks ignited the market. These favorable conditions are expected to impact the Korean stock market as well. Additionally, remarks from Federal Reserve (Fed) officials, who determine the direction of U.S. monetary policy, suggest a possible return of foreign investors to the domestic market.

On the 8th (local time) at the New York Stock Exchange, the Dow Jones Industrial Average rose 104.27 points (0.29%) to close at 36,432.22, the S&P 500 increased by 4.17 points (0.09%) to 4,701.70, and the Nasdaq rose 10.77 points (0.07%) to 15,982.36. The S&P 500 surpassed the 4,700 mark for the first time ever due to the passage of the infrastructure investment bill.

On that day, sectors related to raw materials and infrastructure investment showed broad strength. Mining companies Freeport-McMoRan and CF Industries, construction materials company Vulcan, and steelmaker Nucor led the market gains. Construction equipment manufacturer Caterpillar also joined the upward trend.

The positive effects of the U.S. infrastructure bill's passage were also reflected in the domestic stock market the previous day. Sangyoung Seo, a researcher at Mirae Asset Securities, said, "A strong performance centered on infrastructure-related stocks is expected in the Korean stock market as it was the previous day," adding, "The Fed officials' expression of confidence in the economy and expectations for improved U.S. growth due to infrastructure investment are also expected to have a positive impact on foreign investor demand."

Fed Vice Chair Clarida stated, "Inflation and employment targets for rate hikes will be achieved by the end of next year," and added, "If this forecast is met, the September policy path will align with the Fed's framework." Patrick Harker, President of the Philadelphia Federal Reserve Bank, said, "If COVID-19 does not resurge, growth could exceed 4% next year, with 2-3% growth expected in 2023."

In the U.S. stock market, besides the infrastructure bill, individual positive factors for specific stocks also supported the market. AMD surged 10.14% following news that Facebook (0.74%) will use AMD chips in its data centers.

Jiyoung Han, a researcher at Kiwoom Securities, said, "Semiconductor-related stocks such as Nvidia (+3.5%) also showed sharp price increases as the metaverse theme acted as a tailwind," and predicted, "These factors will have a positive impact on related stocks in the domestic market as well."

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