Semiconductor stocks stumble ahead of Powell’s speech

2023-08-25 06:46:14

Domestic semiconductor stocks all fell compared to the previous trading day
“If Powell’s principled remarks come out, I will return my sense of caution”

▲ KOSPI decline begins
2023.8.25. yunhap news. Semiconductor stocks fluctuated one following another ahead of Federal Reserve Board Chairman Jerome Powell’s Jackson Hole speech. Investors’ wait-and-see sentiment has deepened as uncertainty over an additional rate hike in the US has grown.

According to the Korea Exchange on the 25th, Samsung Electronics finished trading at 67,100 won, down 1.61% from the previous trading day. SK Hynix (-3.64%), SK Square (-2.58%), Hanmi Semiconductor (-1.98%), and DB Hitech (-2.09%) all showed a downward trend. The ‘KODEX Semiconductor’ Exchange Traded Fund (ETF), which invests in key domestic semiconductor-related stocks, fell 3.31% and the ‘HANARO Fn K-Semiconductor’ ETF fell 2.42% from the previous trading day.

Even the previous day, semiconductor-related stocks showed a strong performance thanks to the surprise performance announcement of Nvidia, the leader in artificial intelligence (AI) semiconductors in the United States. The second quarter sales announced by Nvidia were $13.51 billion (regarding 18 trillion won), exceeding market expectations by more than 20%.

Then, ahead of Chairman Powell’s Jackson Hole speech scheduled for the 25th (local time), Nvidia’s earnings surprise effect quickly faded. Analysts say that semiconductor-related stocks plummeted on the same day as investors became more wary and profit-taking sales poured in.

In addition, market anxiety increased as some Fed members who attended the Jackson Hole meeting had mixed comments. Boston Federal Reserve Bank (Fed) President Susan Collins said that “more interest rate hikes may be needed” and that interest rates should continue to be high, while Philadelphia Fed President Patrick Harker said, “The benchmark rate has already reached a limiting level.” expressed an objection.

In August of last year, the Standard & Poor’s (S&P) 500 index plunged 3.4% from the previous day following Chairman Powell said in his keynote speech at the Jackson Hole conference that he would “take the price risk even if the economy slows down.” Accordingly, it is analyzed that the investor sentiment, ‘Let’s avoid the Jackson Hole meeting for now’, is dominantly spreading.

The stock market expects that the direction of the domestic and international stock markets will be determined by Chairman Powell’s remarks that day. Hwang Soo-wook, a researcher at Meritz Securities, said, “The reason why the stock market fell sharply following Chairman Powell made strong hawkish remarks in his Jackson Hole speech last year was that the policy direction was opposite to the previous trend.” If the remarks come out, the probability of reverting the heightened sense of wariness has increased.”

Reporter Kim Seong-eun

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