Global financial markets received a major shock following the struggle for control of the Strait of Hormuz between the United States and Iran. On the 22nd in local time, the New York Stock Exchange showed a shift to a decline, concerned about the intense military maneuvering between the two superpowers. In contrast, the domestic market has continued a strong trend, renewing record highs for three consecutive days in the past, independent of the instability in the foreign exchange market. In particular, during the morning session today, major indices surged to break through the 6,500 point level. The market is now focusing on gauging whether this upward momentum will persist or if the market will undergo a temporary adjustment.
The KOSPI index closed yesterday at 6,475.81 points, up 0.9%, while the KOSDAQ index ended at 1,174.81 points, down 0.58%. The international situation remains sensitive. Military tensions are increasing as the US and Iran are exchanging ships near the strait. U.S. President Donald Trump expressed his intention to moderate the pace of negotiations on the 24th, stating that Iran would not use nuclear weapons. Amidst the expansion of geopolitical risks, the domestic market is maintaining a boom led by growth stocks such as semiconductors.
The core driving force of the domestic market is the performance and stock price increases of semiconductor and AI infrastructure companies. SK Hynix closed at 1,225,000 won, up 0.16%, after announcing its largest quarterly performance ever, while Samsung Electronics, which rose together, concluded trading at 224,500 won, surging 3.22%. As demand for AI data centers explodes, related infrastructure companies such as LS Electric, Hyosung Heavy Industries, and Doosan Enerbility also maintained an upward trend, surging over 10% respectively.
The U.S. market and corporate earnings are also noteworthy. The Dow Jones Industrial Average fell 0.36% and the S&P 500 also dropped 0.41% due to Middle East instability, but the Nasdaq rose 0.89%. Intel announced quarterly results, recording revenue growth of 7.2% and earnings per share of 29 cents, exceeding market expectations and surging 18% in after-hours trading. Currently, U.S. futures indices are starting with a slight advance, with the Dow and S&P 500 declining while the Nasdaq is rising.
There are three key points to watch for the domestic market today. First, although the KOSPI index crossed the 6,500 line during the session, there is concern that it could shift to a decline due to selling pressure from foreigners and institutions. Experts analyze that the momentum of the first-quarter semiconductor earnings season has mostly been reflected, indicating that the initial rally is entering its final stage. Second, the spread of risk aversion due to renewed Middle East tensions. The reactivation of Iran's air defense network and the Israeli Defense Minister's remarks on war preparations are increasing the number of investors moving funds into dollars and U.S. Treasury bonds, so attention must be paid to volatility expansion in the domestic market due to rising oil prices and geopolitical risks. Third, whether net buying in the semiconductor sector continues. It has been observed that retail investors in the U.S. are selling stocks like Nvidia and moving funds into domestic semiconductor stocks, and experts forecast that the strong market centered on semiconductors and power devices will continue until the first half of the year.