[Good Morning Market] US Ends Higher on Ceasefire Extension... Korean Uptrend Expected to Continue

US Market Focus Shifts from War to Earnings

Korea Also Watching Leading Sector Earnings Announcements

"Uptrend Likely to Continue Given Favorable Liquidity"

With the U.S. stock market closing higher following U.S. President Donald Trump’s remarks on extending the ceasefire, the domestic stock market is also expected to continue its upward trend, driven by corporate earnings announcements.

Yonhap News Agency

On the 22nd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 49,490.03, up 340.65 points (0.69%) from the previous session. The S&P 500 index rose 73.89 points (1.05%) to 7,137.90, while the tech-heavy Nasdaq Composite ended 397.60 points (1.64%) higher at 24,657.57.

As the Middle East war drags on, the market’s attention is shifting to earnings season. Although there is still confusion about the ceasefire deadline, President Trump’s comment that a second round of negotiations could take place as early as the 24th (local time) appears to be tilting market sentiment toward gradual agreement. On this day, both the S&P 500 and Nasdaq Composite reached new record highs.

Earnings reports from artificial intelligence (AI) technology-related firms are expected to begin in earnest this week. Thanks to the AI momentum, AI companies are posting strong results. GE Vernova, a core AI infrastructure company, saw its order volume surge 71% year-on-year, posting an earnings surprise in the first quarter. GE Vernova's share price jumped 13.7% compared to the previous trading day.

With expectations for memory semiconductor demand continuing, the Philadelphia Semiconductor Index has also risen for 16 consecutive trading sessions. Lee Sunghoon, a researcher at Kiwoom Securities, stated, "The earnings announcements from hyperscalers (large cloud service providers), which will be released in earnest next week, are expected to determine the direction of AI-related stocks."

The domestic stock market is also expected to maintain its strong performance amid the rally in the U.S. stock market, with major corporate earnings announcements in semiconductors, automobiles, banks, and shipbuilding. Earnings reports are scheduled for key leading stocks in domestic core sectors, including SK hynix, Hyundai Motor, KB Financial Group, Shinhan Financial Group, Hana Financial Group, and HD Hyundai Heavy Industries.

In particular, with Samsung Electronics having delivered an earnings surprise for the first quarter, greatly exceeding market expectations, attention is focused on whether SK hynix will also surpass forecasts. Lee added, "From a stock price perspective, as SK hynix has surged 51.5% since this month, there is a possibility that short-term sell-on-news (profit-taking) after the earnings release could limit the upper end of the index. However, the current favorable liquidity conditions in the domestic market are likely to offset this."

He further commented, "Considering foreign net buying in the KOSPI market since April, as well as the increase in customer deposits and leveraged funds such as margin balances compared to the end of March, we are seeing a resumption of the money move into the stock market after the war. Given the favorable domestic liquidity conditions, we expect a sequential rotation and rebound rally among the country's leading sectors as they announce their earnings, and this trend is likely to continue for some time."

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