U.S. Market Analysis & Korea Daily Briefing — 2026-07-31
The markets took a hit recently due to the Fed’s hawkish stance and rising geopolitical tensions from the Iranian missile strikes. While Korean stocks are currently struggling with semiconductor weakness, there’s optimism that solid earnings from U.S. big tech and continued AI investment could spark a rebound.
U.S. Market Analysis & Korea Daily Briefing — 2026-07-31
U.S. Market Recap: Yesterday
1. Major Indices
- Dow Jones: Dropped 1,150 points (-2.19%), marking its worst day since April 2025.
- S&P 500: Fell 1.52%.
- Nasdaq: Fell 1.74%.
2. Key Drivers of the Decline
- The Federal Reserve's hawkish decision to hold rates steady at 3.5%–3.75%.
- A sharp surge in long-term yields, with multi-year yields hitting a near two-year high.
- Rising geopolitical risks following the Iranian missile strikes, leading to an oil price spike.
3. Turnaround (Spot Trading, July 30)
- Nasdaq 100: Recovered with a 3% gain, as the "AI trade" resumed, led by chipmakers like NVIDIA and AMD.
- Microsoft led the rally.
Key Themes and Issues in the Korean Market
1. Deepening Semiconductor Weakness
- KOSPI: Closed down 1% at 5,591.
- Samsung Electronics: Remained flat despite an earnings surprise; SK Hynix fell 4%.
- Background: Renewed concerns over U.S. big tech cutting back on AI data center investments.
2. Verifying AI Investment Sustainability
- Mixed earnings reports from U.S. big tech (Meta, Microsoft) have fueled doubts about AI profitability.
- Expectations of reduced market concentration following the implementation of regulations on single-stock leverage ETFs at the end of July.
3. Defensive Moves by Pension Funds and Foreign Investors
- Pension funds: Hit their largest single-day net buying volume of 2026, providing a floor for the index.
- Individual investors: Forced selling has emerged amidst the panic.
Top Picks to Watch Today
1. Samsung Electronics (005930)
- Why: Despite a Q2 earnings surprise, the stock is weak due to U.S.-led AI investment concerns. Potential for excess returns in semiconductors.
2. Doosan Enerbility (034020)
- Why: Reported Q2 2026 revenue of 4.7 trillion KRW (+2.8% YoY) and operating profit of 314.3 billion KRW (+15.9% YoY). With gas turbine orders, they have achieved 97% of their annual guidance in the first half alone. Benefiting from rising energy demand.
3. HD Hyundai Electric
- Why: Poised for steady revenue growth due to global power infrastructure demand. Recent sharp stock declines have brought the valuation into a discount zone compared to global peers (12MF P/E 22.7x).
Important: This briefing is for reference only; investors are solely responsible for their own investment decisions.
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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