Analysis: US Market Trends and KOSPI Impact — 2026-05-05
At the start of May 2026, the US market is catching its breath after a powerful April rally, during which the Nasdaq 100 logged its best monthly performance since 2002 with a 15.6% gain. President Trump publicly mocked Fed Chair Powell on social media to pressure for rate cuts, adding to market uncertainty. Meanwhile, the South Korean KOSPI surged past the 6,900 mark for the first time on May 4, driven by strong buying from foreign and institutional investors.
US Market Sectors and Global Issues
📈 Theme 1: Semiconductor/AI strength and 'two-way tail risk'
While the US semiconductor and AI sectors led the market following the April rally, analysts warn they now face 'two-way tail risk' heading into May.
- The Nasdaq 100 rose 15.6% in April, marking its best monthly performance since 2002.
- The S&P 500 also recorded an all-time monthly rally, ranking among the most remarkable months in modern US market history.
- May is expected to be a testing ground for the durability of the April rally, focusing on employment data and semiconductor earnings.
📈 Theme 2: Fed rate hold and monetary policy uncertainty
The decision to hold interest rates at Chair Powell’s final FOMC meeting was labeled a "hawkish hold," impacting the broader market.
- In a rare occurrence, there were 4 dissenting votes at Powell’s final FOMC meeting, the first time in 34 years.
- While US Q1 GDP growth recovered to 2.0%, the outlook for rate cuts remains cloudy due to inflation concerns.
- Growing divergence within the Fed has heightened uncertainty regarding the path of monetary policy.
📈 Theme 3: Continued strength in transformer and power equipment themes
The theme of exporting transformers and power infrastructure to the US continues to attract attention in the Korean market.
- Je-Ryong Electric (033100) hit a 52-week high of 89,800 KRW on May 4, 2026, drawing focus to its US transformer export performance.
- Power equipment stocks are gaining traction on expectations of rising power demand driven by expanded US AI infrastructure investment.
Analysis of Key Opinion Makers
🗣️ President Trump — Mocks Powell on social media, pressures rate cuts
On May 4 (local time), President Trump posted a composite image of Chair Powell falling into a trash can on his social media platform, Truth Social, pushing hard for interest rate cuts.
- Trump captioned the post "Too Late," targeting the Chair.
- The post also included the phrase "Too late, a disaster for America," expressing his frustration with the delay in lowering rates.
- Market Implications: Continued political pressure on Fed independence, along with uncertainty regarding the next Fed Chair nomination and future policy paths, act as risk factors for the market.
🗣️ Fed Chair Jerome Powell — "I will remain as a Board Governor after my term"
During the FOMC press conference on April 29, Powell stated, "Today is my last press conference as Chair."
- Powell announced that he would remain a member of the Board of Governors after stepping down as Chair, an unprecedented move that breaks the 75-year practice of departing upon a successor's inauguration.
- This was interpreted as an attempt to protect the Fed's independence against pressure from the Trump administration.
- Market Implications: The split within the Fed (4 dissenting votes) and Powell's decision to stay on as a Governor add complexity to future policy, remaining a source of market volatility.
Impact on Korean Market and Promising Sectors/Stocks
🇰🇷 Theme 1: Semiconductors — Stock surge despite overvaluation warnings
Despite overvaluation warnings from Citi and BNK regarding Samsung Electronics and SK Hynix, their stock prices have surged, drawing significant attention.
- Samsung Electronics & SK Hynix: Share prices remained strong despite downgrades by Citi and BNK, supported by expectations of an improving memory semiconductor market due to rising AI demand.
- The KOSPI surpassed the 6,900 mark for the first time ever on May 4 (closing at 6,936.99), with 3.9 trillion KRW in net buying from foreigners and 2.5 trillion KRW from institutions; semiconductor stocks led the rally.
- The KOSDAQ closed at 1,213.74.
🇰🇷 Theme 2: Power equipment/Transformers — Beneficiaries of US AI infrastructure
Rising power demand resulting from expanded US AI infrastructure investment is a tailwind for Korean power equipment exporters.
- Je-Ryong Electric (033100): Surpassed a 52-week high of 89,800 KRW in May 2026. Strong US transformer export results serve as the basis for the stock's rise. Strategies utilizing ISA tax-saving accounts are also drawing interest.
🇰🇷 Theme 3: AI-related stocks — The AIOS Tech surge
The Nasdaq-listed AI pivot company AIOS Tech (AIOS) soared 136% in a single day, confirming that investor sentiment regarding AI remains robust. This could provide psychological momentum for domestic AI-themed stocks.
Market Summary
- KOSPI: Recorded 6,936.99 on May 4, breaking the 6,900 mark for the first time. Rose 63 points. Foreigners net bought 3.9 trillion KRW, institutions 2.5 trillion KRW.
- KOSDAQ: Closed at 1,213.74.
- Nasdaq 100: Rose 15.6% during the month of April (best monthly performance since 2002). May enters a phase of checking employment and semiconductor earnings.
- Domestic markets remain generally strong, supported by hopes for easing tensions in the Middle East and the strength of the semiconductor sector, despite the burden of discount rates.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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