The New York Stock Exchange experienced a decline due to uncertainties surrounding the Middle East and rising Treasury yields. However, the domestic market is showing signs of resilience, with the KOSPI potentially continuing its upward trend on August 18, bolstered by strong performance in U.S. semiconductor stocks during the holiday period and improved foreign investor sentiment.
On August 17, the Dow Jones Industrial Average closed down 272.63 points (0.51%) at 53,459.78. The S&P 500 fell 40.70 points (0.52%) to finish at 7,745.06, while the tech-heavy Nasdaq dropped 84.25 points (0.32%) to close at 26,644.91.
Investor sentiment has been dampened by the uncertain outlook for U.S.-Iran peace negotiations. President Donald Trump has expressed a desire not to extend the memorandum of understanding (MOU) with Iran, while Iranian officials have warned of a potential shift to a more aggressive stance if negotiations fail, increasing geopolitical uncertainty.
International oil prices have also risen amid ongoing instability in the Middle East, raising concerns about inflationary pressures. Long-term U.S. Treasury yields have increased, with the 30-year bond yield rising to 5.31%, the highest level since June 2007. This rise in yields has added downward pressure on stock valuations, contributing to the decline in the New York market.
In contrast, semiconductor stocks have shown strength. Micron Technology rose 4.13% as concerns over intensified competition with Chinese firms eased. Major semiconductor stocks in the domestic market are also expected to support a rebound in the index.
As of 8:25 a.m. on August 18, Samsung Electronics was up 2.3%, and SK Hynix increased by 3.8%. Other key semiconductor and technology stocks, including SK Square (3.0%) and Samsung Electro-Mechanics (2.0%), are also trending upward.
Market analysts suggest that while there may be profit-taking due to short-term surges, the internal strength of the domestic market is improving, indicating a likelihood of continued upward momentum.
Han Ji-young, a researcher at Kiwoom Securities, stated, "The KOSPI is showing signs of a directional shift following a halt in foreign net selling, with a broad-based rebound emerging across multiple sectors. While there may be temporary profit-taking pressure due to recent surges, we expect to maintain the continuity of the rebound throughout the week."
She added, "Foreign net buying, which drove last week's KOSPI surge, continues, and 21 out of 26 sectors are recording positive returns, indicating a recovery trend that is not solely focused on semiconductors. If the robustness of August exports is reaffirmed, the KOSPI could stabilize above the 7000 mark as profit-taking volumes are absorbed, centered around semiconductors."
* This article has been translated by AI.
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