Optimism over ceasefire negotiations between the United States and Iran has warmed markets, with the Nasdaq Composite hitting a six-month high overnight. Korea's stock market is expected to attempt a return to the 6,200 level on the KOSPI, led by semiconductor giants Samsung Electronics (005930.KS) and SK hynix (000660.KS).
According to NextTrade, the pre-market opened at 8:01 a.m. on the 16th with a 1.22% gain from the previous day. Samsung Electronics, a market leader, rose around 1.4%, while SK hynix gained approximately 1.8%, lifting the index. The KOSPI, which closed at 6,091.39 the previous day after rising for two consecutive sessions, is expected to open above 6,100 and attempt a return to the 6,200 level.
On the New York Stock Exchange on the 15th (local time), the S&P 500 index closed at 7,022.95, up 0.80% from the previous session, breaking through the 7,000 mark for the first time on a closing basis. The tech-heavy Nasdaq also surged 1.59% to 24,016.02, marking its 11th consecutive day of gains.
The market rally was driven by easing war risks and strong earnings. US President Donald Trump fueled ceasefire optimism in a media interview, saying the war with Iran would "end soon." Major financial institutions including Morgan Stanley and Bank of America reported earnings that exceeded market expectations, boosting investor sentiment. International oil prices, including West Texas Intermediate (WTI), stabilized around $91 per barrel. A sector rotation emerged, with war beneficiaries such as defense and materials declining while previously suppressed sectors like tech and consumer discretionary showed strength.
On Wall Street, artificial intelligence and software-related stocks advanced. Nvidia closed at $198.97, up 1.2%, putting its previous record high of $207.04 within reach. Broadcom surged 4.19% after signing a deal with Meta to expand AI chip production. Core infrastructure companies including Microsoft (4.61%) and Alphabet (1.26%) also rose. Quantum computing theme stock IonQ soared 21%, while footwear company Allbirds jumped 588% in a single day on news of its AI business expansion.
However, amid the overall index strength, memory chipmaker Micron, which has close ties to Korea's stock market, fell 2.02%. SanDisk also dropped 5.6%. Semiconductor equipment maker ASML, which produces extreme ultraviolet (EUV) lithography equipment, declined 4.22% on disappointment that its second-quarter guidance failed to exceed market expectations. With first-quarter earnings expectations already elevated, skepticism has emerged over whether memory prices and profit growth rates can be sustained in the second half.
Market experts are leaving open the possibility that Korea's leading semiconductor stocks may pause intraday, given fatigue from consecutive sharp gains and overnight weakness in US memory stocks. "There seems to be some deliberation over the short-term direction of semiconductor stocks, but this is a natural concern that arises during consecutive price rallies or record-breaking runs by market leaders," said Han Ji-young, a researcher at Kiwoom Securities. "Continued expectations for war ceasefire negotiations and the effect of Nasdaq's record highs can sustain risk-on sentiment, so we expect positive sector rotation into industries other than semiconductors, resulting in neutral-to-positive price movements."
