GLOBAL MARKET TRENDS — 2026-07-05

Global Indices at a Glance

For markets currently in session, data is based on the most recent confirmed price or the previous trading day's close — as of the close of July 2–3, 2026.

🇰🇷 Korean Market

KOSPI / KOSDAQ Summary

The Korean market saw a sharp 7.89% decline on July 2 due to concerns over peak semiconductor demand following Meta's entry into the cloud business, resulting in the loss of 569 trillion won in market capitalization. However, on July 4, it staged a dramatic rebound, recovering the 8,000-point mark thanks to institutional buying. A sidecar (trading halt) was triggered at the 7,700 level on July 3, but the Won-Dollar exchange rate fell by about 30.20 won from the 1,545 range, providing a positive signal for export-oriented stocks.

Supply and Demand Trends

• Foreigners: Specific net buying/selling figures not disclosed
• Institutions: Led the index recovery with net buying on July 4
• Individuals: Recent data not disclosed

Today’s Leading Sectors & Stocks

• Semiconductor Stocks: Samsung Electronics, SK Hynix, etc., are recovering as Meta-related concerns ease — reassessing demand forecasts amid intensifying cloud competition.
• Preference for Defensive Stocks: Large financial and energy stocks are on the rise — a shift toward defensive plays as global rate hike concerns diminish.
• Export Stocks Benefiting from Exchange Rates: Positive signals for automotive and shipbuilding sectors as the Won-Dollar exchange rate trends weaker.

🇺🇸 US Market

Three Major Indices Close (or Recent Session)

The US market rose as June employment statistics (57,000 new jobs, 4.2% unemployment rate) significantly missed expectations, easing concerns over Federal Reserve interest rate hikes. The S&P 500 rose 0.8% and the Nasdaq rose 1.5%, ending Q2 on a strong note, while the Dow Jones hit its 21st all-time high of the year. Despite some corrections in technology stocks, the overall market was supported by a shift toward defensive stocks and expectations for economic cooling.

Key Movements Today

• Financial & Energy Stocks: Rising — buying of defensive stocks following the retreat of Fed hike fears.
• Technology Stocks: Mixed — impacted by semiconductor weakness related to Meta's cloud entry.
• Defensive Stocks (GS, CAT, KO): Strong — expectations for earnings growth in consumer staples.

Sector Trends Financial and defensive sectors led the gains, while some semiconductor-related tech stocks showed weakness. Consumer-related stocks were mixed, and the energy sector continued a gentle upward trend.

1 sources

schwab.com

schwab.com

🌏 Asian & European Markets

Asia (Japan, China, Hong Kong)

Asian markets are showing mixed results due to Meta's cloud entry and concerns over peak semiconductor demand. Korea's KOSPI is recovering from the previous week's sharp decline, while Japanese and Hong Kong markets are also remaining cautious of global economic slowdown signals.

Europe (UK, Germany, France)

Major European indices performed well. Germany's DAX rose 0.85%, France's CAC 40 increased 0.48%, and the UK's FTSE 100 closed 0.3% higher. Defensive and financial stocks led the gains, offsetting weakness in technology stocks.

📊 Market Drivers Today

• Weak Employment Data: With only 57,000 new jobs in June, falling significantly short of expectations (150,000s), the likelihood of Fed rate hikes has decreased. The possibility of a September rate hike is being reassessed, and some analysts are mentioning the potential for rate cuts later this year.

• Meta Cloud Entry Concerns: Meta's announcement to strengthen its own cloud infrastructure business highlighted the "peak demand" theory for semiconductors, causing significant drops for memory chip firms like Samsung Electronics and SK Hynix. The market is currently reassessing whether these concerns were overblown.

• Weaker Won-Dollar Exchange Rate: As the Korean Won retreated by about 30 won to the 1,545 range, it sent a positive signal to export-oriented industries (automotive, shipbuilding, chemicals).

• Strengthened Preference for Defensive Assets: As the environment for Fed hikes eases, investors are moving capital into defensive stocks (finance, energy, utilities) that offer higher dividend yields.

🔭 Next Points of Interest

Key Events This Week

• July 6 (Mon) US Market Reopening — Resuming after the July 3 Independence Day holiday.
• Employment Data Trends: Awaiting additional labor statistics in July.
• Fed Interest Rate Policy Signals: Focusing on Fed rhetoric leading up to the September FOMC meeting.

Investor Checklist

• Check for further potential valuation adjustments in the semiconductor sector.
• Evaluate the sustainability of expectations for US rate cuts.
• Monitor the impact of additional Won exchange rate fluctuations on export-oriented stocks.

💬 A Brief Insight

While weak employment data has temporarily eased the downside risks for global markets by dampening Fed rate hike concerns, worries about peak semiconductor demand and signs of a macroeconomic slowdown remain sources of market volatility.