On August 7, the KOSPI is expected to attempt a rebound based on bargain buying following a sharp decline the previous day.
On August 6, the Dow Jones Industrial Average fell by 0.85%, the S&P 500 dropped by 0.18%, and the tech-heavy Nasdaq decreased by 0.06% on the New York Stock Exchange.
Among individual stocks, SanDisk saw a significant drop of 6.81%, while Western Digital plummeted by 13.03% after its earnings report. Notably, Western Digital's stock fell despite exceeding market expectations, as investors reacted negatively to revenue growth reliant on price increases rather than shipment volume increases.
As a result, Micron's stock also briefly fell over 7%, but later rebounded to close up 1.31% after Alphabet announced a $25 billion bond issuance, raising expectations for future semiconductor investments. The Philadelphia Semiconductor Index, which had initially dropped more than 2%, ultimately closed up 0.33%.
Seo Sang-young, a researcher at Mirae Asset Securities, noted, "While some semiconductor stocks showed weakness after earnings reports, they quickly recovered, starting the day in a stable range. Following Alphabet's bond issuance and hawkish comments from Federal Reserve Governor Lisa Cook, Treasury yields rose, leading to profit-taking and a subsequent decline."
The domestic stock market is expected to reflect the trends in the New York market and investor sentiment towards semiconductor stocks. As of 8:16 a.m., in the NXT pre-market, Samsung Electronics was trading up 0.6% at 232,000 won, while SK Hynix rose 0.2% to 1,498,000 won.
Han Ji-young, a researcher at Kiwoom Securities, predicted, "Today, the domestic market is likely to attempt a rebound, supported by renewed concerns over the uncertainty in the Strait of Hormuz, caution regarding U.S. employment data for July, and the inflow of bargain buying following the previous day's sharp decline."
* This article has been translated by AI.
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