[Good Morning Stock Market] Electric Vehicle Stock Price Differentiation Expected... "Metaverse Concentration" Stock Market Trend

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 19th, the domestic stock market is expected to start lower due to ongoing global inflation concerns, with a market environment focused on individual stocks. A key point to watch is whether the news of Apple’s fully autonomous vehicle will increase the volatility of electric vehicle and secondary battery stocks.

The New York stock market showed mixed results despite improvements in various economic indicators. On the 18th (local time), the Nasdaq index closed at 15,993.71, up 72.14 points (0.45%) from the previous session at the New York Stock Exchange (NYSE). The Standard & Poor’s (S&P) 500 index closed at 4,704.54, down 15.87 points (0.34%) from the previous session. However, the Dow Jones Industrial Average fell 60.10 points (0.17%) to close at 35,870.95.

The stock indices were influenced by third-quarter earnings reports. Semiconductor manufacturer Nvidia posted better-than-expected results with $7.1 billion in revenue and $2.46 billion in net profit for the third quarter, driving its stock price up by 10.7%. Other semiconductor-related stocks were also affected, leading to an overall 2.1% rise and setting an all-time high.

Electric vehicle stocks showed mixed reactions amid competition triggered by Apple’s acceleration of its electric and fully autonomous vehicle business. Despite CEO Elon Musk’s stock sales, Tesla’s stock price rose slightly. Rivian’s stock, which had soared after its listing, dropped about 15%, and Lucid Group’s stock, which surged after recent earnings announcements, fell about 10%.

◆Sangyoung Seo, Researcher at Mirae Asset Securities= The U.S. stock market mostly declined due to high inflation and uncertainty over the passage of social spending bills. Apple and Amazon showed positive momentum based on favorable news, and overall the market was relatively firm, but the concentrated rise in some stocks poses a burden on the Korean stock market. In particular, the acceleration of Apple’s autonomous vehicle business caused most electric vehicle stocks to fall sharply and then decline further, which is expected to weigh on related stocks. However, Apple-related electric vehicle stocks may show resilience, so a stock-specific market is expected to continue. Considering this, the Korean stock market is expected to start lower but will likely see a stock-specific market with changes centered on individual stocks rather than broad market shifts.

◆Jiyoung Han, Researcher at Kiwoom Securities= The domestic stock market is expected to continue a differentiated market by sector and theme within a box range, amid the absence of new macro events during the trading session and inflation concerns. Considering that Tesla, Rivian, GM, and other electric vehicle companies faced downward pressure on their stock prices in the U.S. market following Apple’s fully autonomous vehicle launch news, it is necessary to keep open the possibility of increased volatility in electric vehicle and secondary battery stocks as investors seek beneficiaries and losers in the domestic market on this day.

Both the Korean and U.S. stock markets have recently seen growing interest in metaverse-related active ETFs and the stocks included in those ETFs. As the number of metaverse-related companies continues to increase, ETFs are considered an appropriate alternative for investors who find it difficult to invest in individual stocks. However, there have been cases where the market capitalization of a specific stock surged beyond the amount invested in the ETF simply because it was included in a metaverse-related ETF (similar to the 2010 advisory wrap fund phenomenon, where the mere news of a specific stock being included in a particular wrap fund caused sharp price changes). While trading individual stocks within promising growth themes rather than ETFs can maximize short-term returns, it is advisable to manage risks carefully, as price volatility can be much more extreme compared to other stocks.

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