U.S. stock markets rebounded overnight, buoyed by stabilizing Treasury yields and renewed optimism surrounding artificial intelligence (AI). This raises the possibility of a similar recovery in the domestic market. The positive performance of Nvidia and reduced strike risks at Samsung Electronics are also expected to enhance investor sentiment in semiconductor stocks.
According to the financial investment industry, on May 20 (local time), the Dow Jones Industrial Average rose by 645.47 points (1.31%) to close at 35,059.35. The S&P 500 gained 79.30 points (1.08%) to finish at 4,432.91, while the tech-heavy Nasdaq composite climbed 399.65 points (1.55%) to end at 26,270.36.
The stabilization of U.S. Treasury yields and international oil prices, which had contributed to recent market volatility, has led to a recovery in investor sentiment. The yield on the 30-year U.S. Treasury bond fell by 6.6 basis points to 5.114%, while the yield on the 10-year bond also decreased to around 4.58%.
International oil prices saw a significant drop. July Brent crude futures fell by 5.63% to $105.02 per barrel, and July West Texas Intermediate (WTI) crude futures decreased by 5.66% to $98.26.
Market attention is focused on Nvidia's earnings report. After the market closed on May 20 (local time), Nvidia announced its first-quarter results for the 2027 fiscal year (February to April), reporting revenue of $81.62 billion and earnings per share (EPS) of $1.87. The revenue exceeded market expectations of $79.2 billion, and both the gross profit margin (GPM) and second-quarter revenue guidance also surpassed forecasts.
Nvidia projected second-quarter revenue of $91 billion. However, in after-hours trading, the stock showed a slight decline of about 1% due to concerns over guidance not reflecting sales in China and pre-emptive pricing pressures.
Despite this, the trend of increased investment in AI remains strong. Major semiconductor stocks, including Micron and AMD, also performed well, and the Philadelphia Semiconductor Index surged by 4.49%. Market observers note that global tech giants like Microsoft, Amazon, and Meta continue to expand their AI infrastructure investments.
In the domestic market, news of a labor agreement at Samsung Electronics has boosted investor sentiment in semiconductor stocks. Samsung's labor union and management reached a tentative agreement on wage negotiations for 2026 under the mediation of Minister of Employment and Labor Kim Young-hoon. As a result, a planned general strike has been postponed, with a vote for union members scheduled from 2 p.m. on May 22 to 10 a.m. on May 27.
As of 8:44 a.m. on May 21, Samsung's stock price surged by 5.2% in pre-market trading on NextTrade (NXT). SK Hynix also showed a strong performance, rising by around 4%, indicating a broad buying trend across the semiconductor sector.
Analysts suggest that while a technical rebound is likely following recent declines, high volatility driven by U.S. interest rates and geopolitical factors will persist.
Han Ji-young, a researcher at Kiwoom Securities, stated, "As expectations for negotiations between the U.S. and Iran ease concerns over oil prices and interest rates, the stock market is experiencing a relief rally. However, it is important to note that the domestic market remains strongly characterized by earnings performance."
She added, "Recent adjustments have brought the KOSPI's forward price-to-earnings ratio (PER) below the historically high buy rate of 8 times. Assuming current earnings consensus is maintained, a scenario of the KOSPI reaching 10,000 points is plausible."
* This article has been translated by AI.
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