[Good Morning Market] Nasdaq Soars on U.S. Semiconductor Surge... Further Gains Expected in Korea

Despite the diplomatic stalemate between the United States and Iran, semiconductor stocks led a surge in demand on the U.S. stock market, driving the Nasdaq index to a sharp rise. Analysts predict that the Korean stock market will also attempt further gains, mainly led by semiconductor stocks, but caution is advised regarding short-term volatility due to profit-taking pressure.

On May 8 (local time) at the New York Stock Exchange (NYSE), the tech-heavy Nasdaq index closed at 26,247.08, up 440.88 points (1.71%) from the previous session. The Dow Jones Industrial Average rose by 12.19 points (0.02%) to 49,609.16, and the large-cap S&P 500 index finished at 7,398.93, up 61.82 points (0.84%).

The main driver behind the U.S. stock market rally was the April jobs report surprise. According to the U.S. Department of Labor, nonfarm payrolls increased by 115,000 in the previous month, far exceeding market expectations of 55,000.

While this figure could have provided justification for the Federal Reserve's hawkish (tightening) stance and weighed on the market, other data offered relief. Average hourly earnings for April rose by just 0.2% from the previous month, and the University of Michigan's one-year inflation expectations for May came in at 4.5%, both falling short of forecasts. Han Ji-young, a researcher at Kiwoom Securities, commented, "These two figures coming in below expectations eased concerns about upside inflation risks, providing relief to the market."

The Nasdaq index soared as a result of concentrated demand for semiconductors. Apple and Intel each saw their share prices rise by 2.1% and 14.0%, respectively, following news of chip supply contracts, while Micron Technology surged 15.5% and SanDisk jumped 16.6%.

In the domestic market, the Korean stock index continued to rally while reducing the impact of geopolitical risks. Early this week, the KOSPI is expected to attempt further gains, led by semiconductor stocks. One researcher noted, "In particular, the upcoming earnings results of Cisco Systems and Applied Materials (AMAT) in the U.S. are expected to be events that could influence the semiconductor rally. The results and guidance from these companies could affect the continuity of the memory upcycle narrative."

However, there are also analyses warning that short-term supply-demand volatility should be watched due to profit-taking motivated by the recent semiconductor-led uptrend. Since May, Samsung Electronics and SK hynix have risen by 21% and 31%, respectively. Additionally, foreign investors recorded net purchases of around 6 trillion won in the KOSPI during the first two trading days of last week, but turned to net sales of 12 trillion won over two sessions on May 7 and 8, engaging in short-term profit-taking.

Lee Kyungmin, a researcher at Daishin Securities, stated, "It is necessary to prepare for a rotation market following the recurring phenomenon of early-month semiconductor rallies and concentrated buying. Now is the time to revisit sectors that have been left behind price-wise and those undervalued relative to earnings."

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