Global financial markets have suffered a major shock following the struggle for control of the Strait of Hormuz between the United States and Iran. In local time on the 22nd, the New York Stock Exchange showed a downward trend, concerned about the intense military chess match between the two superpowers. Conversely, the domestic stock market has continued to break records for three consecutive sessions, driven by strong momentum despite the instability in the foreign exchange market. Notably, during morning trading today, major indices surged, breaking through the 6500-point mark. The market is now focused on determining the direction of this upward momentum: whether it will sustain itself or undergo a temporary correction.
On the previous trading day, the Kospi index closed at 6475.81 points, up 0.9%, while the KOSDAQ index ended at 1174.81 points, down 0.58%. The international political situation remains sensitive. Tensions are rising in the region as both the United States and Iran transfer ships near the strait. Meanwhile, U.S. President Donald Trump stated on the 24th that Iran will not use nuclear weapons, signaling a desire to moderate the pace of negotiations. Amidst the expanding geopolitical risks, the domestic stock market is maintaining a boom driven primarily by growth stocks such as semiconductors.
The core engine of the domestic stock market is the earnings and stock price increases of semiconductor and AI infrastructure companies. SK Hynix reported record quarterly earnings, closing with a 0.16% increase at 1.225 million won, while Samsung Electronics, which also rose, surged 3.22% to close at 224,500 won. With the demand for artificial intelligence data centers exploding, related infrastructure companies such as LS Electric, Hyosung Heavy Industries, and Doosan Enerbility have also maintained an upward trend, surging more than 10% each.
The U.S. stock market and corporate earnings are also noteworthy. Due to Middle East instability, the Dow Jones Industrial Average fell 0.36%, and the S&P 500 dropped 0.41%, but the Nasdaq rose 0.89%. Intel, after reporting quarterly earnings with a 7.2% revenue increase and net income of 29 cents per share, exceeded market expectations and surged 18% in after-hours trading. Currently, U.S. futures indices are starting with a slight gain, while the Dow and S&P 500 are falling and the Nasdaq is rising.
There are three key points to watch regarding the domestic stock market today. First, although the Kospi index surpassed the 6500 line during trading, there are concerns about a downward shift due to selling pressure from foreigners and institutions. Experts analyze that the momentum from the first quarter semiconductor earnings season has largely been reflected, suggesting the first rally is nearing its end. Second, the spread of a risk-averse sentiment due to renewed Middle East tensions. The reactivation of Iran's air defense network and war preparation statements by the Israeli Defense Minister are increasing investors moving funds into dollars and U.S. Treasury bonds, so attention must be paid to volatility in the domestic market caused by rising oil prices and geopolitical risks. Third, whether net buying in the semiconductor sector will continue. A trend has been detected where retail investors in the U.S. (West Coast bugs) are selling stocks like NVIDIA and moving funds to domestic semiconductor stocks. Experts forecast that the bull market centered on semiconductors and power equipment will continue until the first half of the year.