[Good Morning Stock Market] Short-Term Rally Fatigue and Middle East Tensions: "Domestic Market Expected to Open Lower"

Profit-Taking Pressure Increases in the Domestic Stock Market
"Decline in Semiconductor Stocks Likely to Be Limited"

There are projections that the domestic stock market will open lower, as upward momentum has waned and concerns are rising due to heightened tensions from the U.S.-Iran conflict and a shock in U.S. artificial intelligence (AI) software earnings.

On April 23, 2026, amid optimism about the resumption of peace negotiations between the United States and Iran leading to gains in the three major New York Stock Exchange indices, the KOSPI also surpassed the 6550 mark during the day, reaching an all-time high. At the dealing room of Hana Bank headquarters in Jung-gu, Seoul, an employee is monitoring the stock market and exchange rates. Photo by Jo Yongjun

U.S. stock markets closed lower. On April 23 (local time) on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell by 179.71 points, or 0.36%, ending at 49,310.32. The S&P 500 Index dropped by 219.06 points, or 0.89%, to 24,438.50, while the tech-heavy Nasdaq Composite fell by 29.50 points, or 0.41%, to 7,108.40.

Fatigue from reaching all-time highs earlier this month has accumulated, and renewed Middle East tensions, along with declines in software company stocks, contributed to the market's fall. U.S. President Donald Trump's order to sink an Iranian minelayer in the Strait of Hormuz, as well as reports of Iranian air defense systems being activated and clashes in Tehran, have heightened tensions in the Middle East and driven international oil prices higher. West Texas Intermediate (WTI) crude oil has returned to the 95-dollar level.

The market is reacting sensitively to future profitability outlooks. Software companies such as ServiceNow (-17.7%) and IBM (-8.2%) saw their stock prices plunge. Despite earnings surpassing market expectations, concerns over slowing subscription revenue growth and conservative guidance, combined with fears that AI innovation may erode the market share of existing players, have weighed on these stocks.

Tesla (-3.6%) also saw its share price fall after projecting this year's capital expenditures at $25 billion, three times last year's investment. The market believes that this level of investment could turn Tesla's free cash flow negative.

Today, the domestic stock market is expected to open lower as investors take profits in response to the U.S. market conditions and heightened Middle East tensions. However, the semiconductor sector is likely to show robust performance, which could limit downward pressure.

Even in the U.S. market, IT hardware stocks, including semiconductors, demonstrated solid performance. This could partially reduce volatility in domestic semiconductor stocks.

Texas Instruments (19.4%) and other large technology companies posted earnings surprises in the first quarter, benefiting from increased AI investment, with data center sales surging 90% year-on-year. The company also provided strong second-quarter revenue guidance in the range of $5 billion to $5.4 billion. The Philadelphia Semiconductor Index has been up by about 1.7%, maintaining its strong performance since March 31.

Ji Young Han, a researcher at Kiwoom Securities, said, "With major companies continuing to announce their earnings, we expect a market driven by individual stocks based on earnings releases in the domestic market."

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