Wait-and-See Before Fed Chair's Speech

Yesterday, Nvidia closed with a sharp rise, but the U.S. stock market showed a concentration phenomenon where the number of declining stocks was greater than the number of rising stocks. Major semiconductor companies such as Micron also rose in after-hours trading but fell during regular trading hours. In the domestic market, these after-hours trends have already been pre-reflected, and some profit-taking is emerging from the outset.

Given the characteristics of a Friday market, a holding perspective is recommended over aggressive investment.

Immediately after the announcement, the stock price fell by about 6%, reacting negatively to the market. However, the content of this rights issue can be interpreted as an investment for corporate growth, leading to expectations of a gradual stock price recovery.

Recently, software-related companies in the U.S. stock market have shown strength. This is due to their very strong earnings reports. Following the robust earnings, target prices are being raised, and the companies themselves are providing positive guidance. In particular, the crisis theory in the software industry, which emerged after the introduction of AI, has been resolved, and earnings surprises from cloud and security software companies are driving this strength.

Recently, both companies submitted relevant proposals to the government, competing to win the project.

Considering the overall market sentiment and supply-demand situation, a strong upward trend as expected is unlikely.

It is a market term typically used to describe a modest upward trend that is not considered a strong bull market, but also not a decline.

Moreover, it is reported that there will be no Q&A session during his speech, raising concerns that the market may be disappointed by not getting the necessary information. This could potentially lead to a decrease in market confidence in policy.

The market is currently judged to have entered the early stages of a bull market. The key will be whether the KOSPI index breaks through the 7,100 to 7,200 level. Active rotation is observed across various sectors, including secondary batteries, pharmaceutical bio, and robotics, supporting the view that the market is transitioning to an upward trend.

To gauge current market sentiment, the KOSDAQ index can be more important. The KOSPI is highly dependent on a few large-cap stocks like Samsung Electronics and SK Hynix, so their movements significantly impact the overall index. In contrast, KOSDAQ has many diverse small and medium-sized stocks, tending to reflect overall market sentiment more accurately.

Representative Lee Joo-yeon assessed that Naver would be a good investment option considering these points.

Therefore, further downside potential from the current stock price level is anticipated to be limited.

However, additional purchases should be approached from a long-term perspective, and for investors without spare capital, a holding strategy of maintaining current holdings is recommended. This strategy focuses on the company's long-term growth potential rather than short-term market volatility.

The fact that the market is reacting less sensitively to negative news than before is interpreted as a positive sign that overall market sentiment is improving.

Such stocks also lack long-term continuity in supply and demand, making a short-term approach crucial. Therefore, sufficient understanding of sharp price fluctuations and quick decision-making are required when investing. A short-term trading strategy may be more suitable than a long-term one.

This suggests further downside potential, and the current stock trend is considered quite difficult. Increasing debt ratios and widening losses are also factors that are eroding market confidence. Representative Lee Joo-yeon stated that she would not buy Lunit at this time, as breaking through the current resistance level is difficult and new entry is inappropriate.