Bloom Energy Takes Profits After S&P 500 Inclusion

Key related data such as oil prices are published daily, so market participants have been factoring it into their calculations in advance. Because of this, the market impact of the inflation release is expected to be limited.

In particular, high short-selling ratios were confirmed in the DRAM ETF and the SOX semiconductor index, and the breakout from the trading range without a volume explosion is read as a pattern typical of short covering. This has been cited as the main reason semiconductor stocks stayed strong despite concerns about rate hikes.

This is because the funds tracking the S&P 100 are limited to less than 30 trillion won. In fact, the lack of after-hours price movement in S&P 100 constituents such as Dell and Arista Networks supports this view.

Since the expected inflow is estimated at roughly 10% of Bloom Energy's market capitalization, the strategy is to sell during this period and secure gains. Specifically, the plan is to complete sales between September 18 and 23 and then not hold Bloom Energy for six months afterward.

There was also initial confusion, with some believing a different stock would be included instead. This points to the complexity of the S&P 500 inclusion process and the potential for confusion in early information.

The contract is equivalent to about one year's supply at Bloom Energy's full capacity operation, and is expected to lead to additional capacity expansion needs and an increase in its order backlog. This is read as a positive signal for Bloom Energy's business expansion and revenue growth.

A cautious approach toward AI-related stocks in S&P 500 inclusion has been observed. The inclusion of AI-related stocks such as Astera Labs has been delayed. This is because the S&P 500 appears to be selecting stocks with long-term upside potential rather than short-term trading prospects. The move is interpreted as a response to past cases where market flows were disrupted when AI-related stocks entered the S&P 500 too quickly.

Recently released strong jobs data is raising the likelihood of a rate hike. Nonfarm payrolls for August came in at 162,000, and July's figure was revised upward. In particular, the broad unemployment rate (U6) fell from 7.9% to 7.7%, easing concerns about a recession. This labor market strength pushed bond yields higher and resulted in the probability of a September rate hike breaking above 58.6%.

Concerns have been raised that the recent sharp strength of the won could negatively affect the profitability of Korean exporters. If won strength continues, the won-converted value of each $10,000 of export revenue will decline, which could lead to lower sales and operating margins for companies. This extreme currency volatility has been pointed out as a source of market discomfort.

This is interpreted as a response to Iran's attempt to set restricted zones within the Strait of Hormuz. The move is read as part of a strategy to sanction Iran's 'shadow fleet' and block Iran's crude oil exports.

This is detected in changes in the activities of Witkoff and Kushner, who were former President Trump's envoys. This shift is read as a signal of increased likelihood of attempts to negotiate an end to the Ukraine war, and major US diplomatic news is expected to focus more on the Ukraine-Russia situation going forward.

Samsung Electronics opened up over 5%, and other Samsung affiliates such as Samsung Electro-Mechanics and Samsung C&T also rose. Together with the Bloom Energy issue, this trend helped create a positive mood across the broader market.

US overnight trading will be closed for the Labor Day holiday. Attention is also needed for possible breaking news on Canada's tariffs on the US. Investors should watch next week's market calendar and developments on Canadian tariffs and respond accordingly.

While there are short-term catalysts, the analysis warned against aggressively increasing positions. If volatility rises, managing investor psychology becomes difficult, so a cautious approach is needed.

Coupang belongs to the Asian tech category and is strongly influenced by the movements of major Asian tech companies such as Alibaba and Tencent. Since Alibaba's share price is currently stuck near the bottom, Coupang is expected to follow a similar price path.

Although a technical rebound in the semiconductor index is possible, the recommendation is to hold from Tuesday through Wednesday of this week. If the breakout above resistance fails, the advice is to consider splitting out 20–30% sales.