US tech stocks rebounded on May 8 (local time), with the Nasdaq rising 0.20% to 25,870.65 as semiconductor and AI infrastructure stocks attracted bargain hunting following recent declines. The recovery followed President Trump's statement that 'war will not restart' regarding US-Iran tensions, easing risk-off sentiment that had pressured markets earlier in the session. Korean stocks are positioned for potential recovery on May 9, with KOSPI 200 night futures up 4.06% and MSCI Korea ETF gaining 0.79%, after the KOSPI index plunged 5.35% to 7,246.79 on May 8 in its second consecutive day of heavy losses. The rebound occurred despite the Federal Reserve's hawkish FOMC minutes released May 8 showing multiple members advocating for rate hikes, with the Fed holding its benchmark rate at 3.50-3.75%. Market volatility stems from overlapping factors including Middle East geopolitical risks after US airstrikes on over 80 Iranian targets, surging oil prices with Brent crude up 5.2% to $78.02 per barrel, and options expiration day scheduled for May 9 in the Korean market.
Nasdaq Rises 0.20% as Semiconductor Stocks Rally on May 8
The Nasdaq Composite closed at 25,870.65 on May 8 (local time), up 0.20% from the previous session, while the Dow Jones Industrial Average fell 1.09% to 52,348.09 and the S&P 500 declined 0.28% to 7,482.58. The session opened with risk-off sentiment as the US conducted airstrikes on over 80 Iranian targets and terminated sanctions exemptions on Iranian oil exports, driving international oil prices sharply higher. President Trump declared an end to the war termination memorandum of understanding (MOU) and indicated potential for additional strikes. Markets stabilized after Trump later stated 'war will not restart,' triggering bargain hunting in recently declined semiconductor stocks that drove the Nasdaq into positive territory.
Philadelphia Semiconductor Index Gains 2.23% Led by NVIDIA and Broadcom
The Philadelphia Semiconductor Index rose 2.23% on May 8 (local time). NVIDIA gained 3.65% following reports that China approved purchases of H200 chips. Broadcom surged 4.83% on news of a $30 billion chip supply contract with Apple. Micron rose 1.11%, SanDisk advanced 6.77%, Western Digital climbed 3.42%, Seagate gained 3.91%, Applied Materials (AMAT) increased 2.89%, Lam Research rose 2.15%, and ASML added 1.22%. AI infrastructure stocks also showed strength, with Penguin Solutions jumping 25.13% after raising its annual earnings outlook, while Dell gained 3.52%, HP rose 3.57%, Arista Networks surged 8.76%, and Super Micro Computer climbed 7.31%. Large-cap tech stocks showed mixed performance, with Apple up 0.88% but Microsoft down 1.41%, Meta falling 2.02%, Amazon declining 0.96%, Alphabet dropping 1.35%, and Tesla sliding 2.23% on intensifying robotaxi competition concerns.
Fed FOMC Minutes Show Hawkish Stance with Rate Hold at 3.50-3.75%
The Federal Reserve released FOMC minutes on May 8 (local time) from the meeting chaired by Fed Chair Kevin Warsh, revealing a hawkish tightening stance. The Fed unanimously held the benchmark rate at 3.50-3.75%, but a significant number of members argued that rate hikes may be necessary within the year. Members assessed that concerns about the labor market have somewhat eased but worries about inflation are growing. The minutes indicated broad agreement that additional rate hikes could be needed if inflation persists at higher-than-expected levels. Market participants evaluated that the minutes contained no new tightening signals, as the possibility of additional rate hikes within the year had already been largely priced in, limiting the actual impact. The reaffirmation of the global tightening stance is expected to act as a volatility factor for Korean stocks.
KOSPI 200 Night Futures Up 4.06% Signaling Rebound Potential
The KOSPI index fell 5.35% to 7,246.79 on May 8, with market capitalization dropping below 6,000 trillion won for the first time in seven weeks as semiconductor peak concerns and Middle East risks converged. Korean market indicators showed positive signals, with MSCI Korea ETF up 0.79% and KOSPI 200 night futures rising 4.06%. Seo Sang-young, a researcher at Mirae Asset Securities, stated, 'President Trump's remarks that war with Iran has not restarted somewhat eased market anxiety, and bargain hunting flowed into semiconductor stocks. Since the US-Iran conflict largely triggered profit-taking, a rebound is highly likely to appear in the Korean stock market as well.' He added, 'News of additional US military attacks came near the close and coincides with options expiration day, so intraday volatility could expand. Uncertainty surrounding the semiconductor industry outlook and global tightening concerns also remain burdens on the market.'
FAQ
What caused the Nasdaq to rise on May 8 despite geopolitical tensions?
The Nasdaq rose 0.20% to 25,870.65 on May 8 (local time) after President Trump stated 'war will not restart' regarding US-Iran tensions, which eased risk-off sentiment and triggered bargain hunting in semiconductor stocks that had recently declined. The Philadelphia Semiconductor Index gained 2.23%, led by NVIDIA's 3.65% rise on China H200 chip purchase approval and Broadcom's 4.83% surge on a $30 billion Apple chip contract.
Why are Korean stocks expected to rebound on May 9?
Korean stocks show rebound potential on May 9 based on KOSPI 200 night futures rising 4.06% and MSCI Korea ETF gaining 0.79% following the US tech stock recovery on May 8. Seo Sang-young from Mirae Asset Securities stated that the US-Iran conflict largely triggered profit-taking and a rebound is highly likely in the Korean market, though he noted that options expiration day and additional US military attack news could expand intraday volatility.
What did the Fed FOMC minutes reveal on May 8?
The FOMC minutes released on May 8 (local time) showed the Federal Reserve unanimously held rates at 3.50-3.75%, but a significant number of members argued that rate hikes may be necessary within the year. Members indicated broad agreement that additional rate hikes could be needed if inflation persists at higher-than-expected levels, though market participants assessed the minutes contained no new tightening signals beyond what was already priced in.
