The New York Stock Exchange closed higher on the 20th (local time), boosted by strong performances from major tech stocks and an easing of U.S.-China trade tensions. It is expected that the Korean stock market will also continue its upward trend on the 21st, as external uncertainties subside and expectations for the earnings season grow.
On this day, the Dow Jones Industrial Average finished trading at 46,706.58, up 515.97 points (1.12%) from the previous trading day. The S&P 500 Index rose by 71.12 points (1.07%) to 6,735.13, and the tech-focused Nasdaq Index closed at 22,990.54, gaining 310.57 points (1.37%). The Russell 2000 Index, which focuses on small and mid-cap stocks, also rose 1.95% to close at 2,499.90.
Apple was the clear leader driving the market’s rise. Its stock price surged by 3.94% to 262.24 dollars, setting a new all-time high, thanks to strong sales of the iPhone 17 and an upward revision of its target price by investment bank Loop Capital. The strength in Apple spread to the broader tech sector, improving investor sentiment.
The easing of political uncertainties also contributed to the reversal in market sentiment. Kevin Hassett, Chairman of the White House National Economic Council (NEC), mentioned that a government shutdown is likely to end this week and expressed optimism that government operations could normalize with the cooperation of moderate Democratic lawmakers.
Additionally, comments from U.S. President Donald Trump regarding trade negotiations with China further fueled market expectations. He stated that he maintains a very good relationship with Chinese President Xi Jinping and plans to meet in Korea within weeks. He added that a very strong trade agreement will be reached by the time they leave Korea, indicating that no clashes will occur. In the midst of heightened tensions following China’s rare earth export controls and the U.S.’s announcement of additional tariffs on Chinese goods, investors focused on the prospect of a negotiation resolution.
The KOSPI, which has been setting new record highs, is also expected to continue its upward trend, riding on expectations for the earnings season. Lee Sung-hoon, an analyst at Kiwoom Securities, noted that, despite growing desires for profit-taking, the favorable trend seen the previous day is expected to continue. As major domestic companies enter the earnings season from this week, the warmth of the bull market is anticipated to spread to stocks with solid performance momentum.