As selling pressure continues in the semiconductor sector on the U.S. stock market, Samsung Electronics and SK Hynix are both showing declines of over 4% in pre-market trading. Following last week's sharp drop and the impact of U.S. semiconductor stock declines during the holiday period, increased volatility is expected in the domestic market.
As of 8:17 a.m., Samsung Electronics is trading at 240,000 won, down 15,000 won (5.88%) from the previous trading day. At the same time, SK Hynix has fallen 10,700 won (5.81%) to 1,735,000 won.
On July 17, the Dow Jones Industrial Average closed down 406.55 points (0.77%) at 52,146.42. The S&P 500 index fell 76.08 points (1.01%) to 7,457.69, while the tech-heavy Nasdaq composite dropped 361.71 points (1.41%) to 25,520.24.
The U.S. stock market has experienced two consecutive days of declines. Following the earnings report from Taiwan's TSMC, profit-taking in semiconductor stocks has emerged, compounded by news of delays in Alphabet's artificial intelligence (AI) development, which has dampened investor sentiment across the tech sector. Additionally, the U.S. airstrikes in Iran have added pressure to the market.
The domestic market has also been hit hard by deteriorating sentiment in semiconductor investments. The KOSPI index plummeted 463.81 points (6.37%) on July 16 before closing for the Constitution Day holiday on July 17. During the holiday, the Philadelphia Semiconductor Index fell 4.29% on July 16 and 1.63% on July 17, leading to further downward pressure on large-cap semiconductor stocks in Korea.
Seo Sang-young, a researcher at Mirae Asset Securities, stated, "Last Thursday, Samsung Electronics and SK Hynix alone contributed approximately 333 points to the KOSPI's decline. The significant drop in semiconductor stocks on the U.S. market will act as a short-term burden on the Korean stock market today."
However, there are also expectations for a rebound in buying due to the recent sharp decline. Seo noted, "The increase in semiconductor and electronic component production in industrial output indicates that demand related to AI remains robust, and the trend of big tech investing in AI continues, which could lead to a rebound in buying. As major tech companies begin reporting earnings this week, increased intraday volatility in the index is inevitable during the earnings confirmation process."
Lee Kyung-min, a researcher at Daishin Securities, commented, "While increased downward pressure on the KOSPI in the early part of the week is unavoidable, further declines in the KOSPI could be part of a cyclical downturn in global semiconductor and stock markets. However, it is also possible to break this cycle and proactively show signs of a turnaround."
* This article has been translated by AI.
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