Nvidia uncertainty eases, sparking early gains before foreign investors pivot to selling.
Rising interest rates, oil prices, and Bitcoin volatility weigh on sentiment ahead of next week's AI events.
Key Market Trends
① Nvidia 'Sale' Triggers Open Run; Semiconductor Stocks Rise Early
The domestic stock market opened higher on the perception that uncertainty surrounding Nvidia's management had peaked. However, selling pressure mounted later in the session due to fluctuations in interest rates, oil prices, and digital assets.
Following reports of CEO Jensen Huang's resignation, Nvidia shares plunged approximately 13% in early U.S. trading before paring losses to around 5%. The resolution of the leadership question helped alleviate management uncertainty, fueling bargain hunting.
Notably, U.S. retail investors reportedly placed record-high buy orders for Nvidia early in the session, an "open run" response to what the market perceived as an "Nvidia sale." In Korea, Samsung Electronics and SK hynix also saw gains in early trading.
Sentiment was further supported by news that demand for the Anthropic IPO reached six times the planned volume. Anthropic is set to finalize its offering price on the 18th and begin trading on the 19th.
② Interest Rates and Crypto Weigh on Sentiment; Unverified Reports Add Pressure
The market atmosphere shifted in the afternoon. As international oil prices and major sovereign bond yields rose, Bitcoin retreated to the $68,000 range, heightening caution toward risk assets.
With the U.S. 10-year Treasury yield exceeding 5.1%, Japanese yields also climbed, and the dollar strengthened. Hawkish remarks from Federal Reserve officials, combined with rising oil prices amid dimming prospects for U.S.-Iran negotiations, placed pressure on growth stocks.
The weakness in the cryptocurrency market also had an impact. As Bitcoin's losses widened, U.S. stock index futures weakened, a trend mirrored by the domestic market. Recent capital outflows from the crypto market highlight that risk appetite has not fully recovered.
During the session, unverified reports from Taiwanese media—alleging that an individual linked to the Jensen Huang controversy had ties to Chinese intelligence—spread across other outlets. Despite the lack of confirmation, the report exacerbated market volatility given the existing uncertainty surrounding Nvidia.
③ Limited Policy Impact on KOSDAQ; Foreigners Resume Selling
A meeting attended by the President regarding the stock market initially boosted sentiment on the KOSDAQ. Following discussions on promoting the KOSDAQ and activating long-term investment, expectations for follow-up policies remained high.
However, the impact was short-lived as no concrete new measures were presented. With profit-taking following recent rebounds and a "wait-and-see" approach ahead of major AI events, the market saw strong sector differentiation rather than broad index gains.
While materials, components, equipment, robotics, finance, construction, and automotive electronics rose, holding companies, pharmaceuticals, biotechnology, and some gaming stocks saw declines.
Supply, Demand, and Sectors
Foreign investors began the day as net buyers but shifted to net sellers during the session. They focused on selling electrical and electronic stocks, while also offloading electric utilities and securities. Conversely, they were net buyers in transportation, telecommunications, IT services, finance, and chemicals.
On the KOSDAQ, foreign investors bought into transportation equipment, pharmaceuticals, and entertainment. Institutional investors were net sellers of electrical/electronics, chemicals, utilities, and IT services on the KOSPI, while purchasing pharmaceuticals, transportation equipment, securities, machinery, and retail.
On the KOSDAQ, institutions focused on electrical/electronics and machinery. The market is currently characterized by selective stock picking rather than broad-based buying.
Editor's Outlook
Next week will be a critical juncture for AI-related events. With Nvidia's earnings release and the Anthropic IPO, investors will have a clear view of the AI industry's performance, sentiment, and capital flows.
For Nvidia, management's commentary will be as important as the financial figures. Investors are likely to focus on post-Jensen Huang leadership, existing client contracts, and AI infrastructure investment strategies. For Anthropic, the key will be whether high subscription demand translates into sustained post-listing share price performance.
While today's market was shaken by interest rates, Bitcoin, and unverified reports, it differs from recent large-scale sell-offs. Forced position liquidation by hedge funds appears to have peaked, and foreign selling in Korea has not been consistently sustained.
For the time being, the market may continue to alternate between gains and profit-taking as it narrows down leadership sectors. Rather than focusing on daily index fluctuations, it is time to monitor which stocks—particularly those with solid earnings outlooks and accumulated institutional buying—regain momentum after corrections.
Source: Market Man's Stock Story (t.me/shmstory)
YouTube: Market Man TV (www.youtube.com/@blueoak1004)
This article is a reconstruction of a Telegram post by 'Market Man's Stock Story' with the author's consent. All content may contain errors and does not constitute investment advice. The contents of this post cannot be used as legal evidence under any circumstances.
