Domestic Stock Market Lukewarm Despite Nvidia's Strong Earnings

Ahead of Nvidia's earnings announcement, market expectations have become very high, demanding not just good results but overwhelmingly exceptional performance. Expert Ha Chang-wan diagnosed that for the stock price to react positively, these earnings must not only score a perfect 100 out of 100 but also include elements that move investors.

After Nvidia's earnings were announced, despite a bullish atmosphere, the domestic stock market's reaction is being evaluated as relatively lukewarm compared to the past. Expert Vincent commented, "Our market has started, and if it were like this in the past, today would have really exploded," judging the current reaction to be below expectations.

Frequent circuit breakers in the domestic stock market in the past caused considerable fatigue among many investors. Expert Vincent stated, "Circuit breakers were really frequent in the past, weren't they? Many people got tired of that," explaining that such experiences reinforce investors' current aversion to volatility.

Recently, as the won-dollar exchange rate has improved and the won has significantly strengthened, changes in domestic investors' asset allocation strategies have emerged. Expert Vincent noted, "The won-dollar exchange rate has improved a lot again, hasn't it? The won has become very strong," suggesting that this environmental change likely led to domestic investors increasing their proportion of asset allocation to the U.S. stock market.

The current low trading volume in the domestic stock market acts as a major obstacle to market gains. Expert Vincent stated, "Trading volume cannot be this small," explaining that the lack of trading volume weakens the supply and demand dynamics needed to absorb existing sell-offs and push up stock prices. This is identified as one of the main reasons why the market cannot strongly rebound.