Interest Rates and Oil Prices Fall; US Market Closes Strong with Semiconductors, Nuclear Power, Biotech

Semiconductor, nuclear power, and biotech sectors particularly led the gains, with falling oil prices and interest rates acting as major catalysts for the overall market rise.

According to Middle Eastern media, there were reports that Iran's conditions for the Strait of Hormuz were conveyed to Pakistan.

This is interpreted as media coverage aimed at resuming logistics negotiations, raising hopes for an easing of tensions in the Middle East.

This could increase market volatility until its actual implementation in September and is interpreted as policy pressure to drive down interest rates.

While there was no significant change in the semiconductor industry itself, falling treasury yields and improved sentiment led the semiconductor index to rise by 1.4%.

Expectations for reduced volatility ahead of Nvidia's earnings announcement also contributed to the rise in the semiconductor sector.

A differentiated trend among semiconductor-related stocks is anticipated, depending on the earnings results.

A Russian-originating news report that the US and Iran had agreed to a truce and would soon announce it caused oil prices to drop by 5%.

However, the absence of official confirmation from Iran and the US has raised doubts about the report's credibility, suggesting it may be a temporary market reaction.

If Chair Powell makes hawkish remarks, the market could sharply decline, as it did after past statements by Jerome Powell, requiring caution.

Due to the strength of the semiconductor sector, the rise of big tech companies was limited, with only Nvidia seeing significant gains.

The software sector was sluggish except for Oracle, while the pharmaceutical and biotech sectors showed upward trends, primarily for specific issue-driven stocks like Moderna.

SK Hynix ADR closed with a doji candlestick with an upper wick, while SanDisk opened with a gap up but turned into a bearish candle.

Western Digital and Micron Technology showed a gentle upward trend, but overall, they are forming a non-trend phase characterized by initial strength followed by weakness.

Nuclear power-related stocks such as Oklo, Centrus Energy, and NuScale Power showed strength.

This is attributed to expectations of increased power demand from AI data centers and government policy comments, with power grid stocks like Blue Energy also rising.

Moderna surged 14%, leading to a 3-8% rise in biotech ETFs, suggesting that interest rate cut trends and a strong US biotech market will positively influence the Korean market.

This indicates the potential for a rebound in major domestic pharmaceutical and biotech stocks, including AltEogen.

Bitcoin-related stocks tend to see their gains reduced toward the end of the day after morning strength, so caution is needed when responding to themes. At this point, pharmaceutical/biotech and nuclear power/grid themes may be more favorable.

Today's key market schedule includes Hyundai Motor's CEO Investor Day, where robot stocks are expected to react to expectations regarding Boston Dynamics' IPO plans or trip initiatives.

Ahead of Nvidia's announcement and the PCE price index release, a strategy based on sector rotation rather than large-cap stocks is valid, and issues related to Anthropic, Naver, and SK Telecom also warrant attention.

BH is gaining interest as a US investment-related stock with strong earnings.

Substrate-related stocks like Simmtech and Korea Circuit are also showing favorable trends, and Doosan Tesna is drawing attention for its connection to Nvidia's AI inference issues.

Overall, a strategy focusing on nuclear power and semiconductor material, component, and equipment (SooBuJang) stocks with expected earnings improvements is necessary.