U.S. stocks closed mixed overnight as the August Personal Consumption Expenditures (PCE) price index fell short of market expectations, but rising long-term Treasury yields created headwinds. However, Micron's record earnings, exceeding market forecasts, may support a rebound in the domestic stock market, particularly in semiconductor stocks.
On the New York Stock Exchange, the Dow Jones Industrial Average fell 0.86%, while the S&P 500 dropped 0.25%. In contrast, the tech-heavy Nasdaq Composite rose 0.24%. The Philadelphia Semiconductor Index remained flat, and KOSPI 200 night futures declined by 0.46%.
U.S. stocks initially rose due to the PCE price slowdown but surrendered most of those gains as long-term Treasury yields increased. The August PCE price index rose 3.4% year-over-year, below the market expectation of 3.7%, with core PCE also falling short of forecasts.
However, the yield on the 10-year U.S. Treasury note surpassed 5.3% during trading, reaching its highest level since 2002. The 30-year yield also exceeded 5.6%. Despite the inflation slowdown, concerns about prolonged high interest rates have grown due to robust U.S. economic growth and employment trends.
International oil prices also rose, with November Brent crude increasing by 0.92% to $103.53 per barrel, while West Texas Intermediate (WTI) rose 1.16% to $90.42. Seo Sang-young, a researcher at Mirae Asset Securities, noted, "International oil prices increased as negotiations between the U.S. and Iran showed no progress, and President Donald Trump denied the possibility of easing sanctions on Iran."
In the semiconductor sector, Micron's strong performance is seen as a potential boost for investor sentiment. After the market closed, Micron announced that its revenue for the fourth quarter of fiscal year 2026 (June to August) reached $54.23 billion, surpassing the market estimate of $51.07 billion.
As a result, attention is focused on whether the domestic stock market can rebound after three consecutive days of decline. The KOSPI, which has a high concentration of semiconductor stocks, may benefit from Micron's strong results.
Han Ji-young, a researcher at Kiwoom Securities, stated, "The fact that Micron's results, released after the U.S. market closed, showed better than neutral outcomes is a relief factor." She added, "Despite the news of the U.S. stock market giving back gains due to the surge in 10-year Treasury yields, the domestic market is expected to rebound, supported by the end of quarter rebalancing, the Micron earnings surprise, and expectations for September exports from Korea."
Additionally, President Trump announced that South Korea's investment projects in the U.S. include the development of liquefied natural gas (LNG) in Alaska and the construction of eight large nuclear power plants, making related stocks worth monitoring.
* This article has been translated by AI.
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