amid profit-taking sales, led by semiconductor sector

01/08 U.S. stocks close mixed amid profit-taking sales, led by semiconductor sector

The U.S. stock market started lower due to sluggish semiconductor stocks, which have increased desire to realize profits. In addition, the New York Fed’s consumer expectation survey confirms economic uncertainty. However, non-agricultural productivity maintains a solid trend, easing concerns over economic slowdown and limiting the index’s decline. In particular, circulation of sectors from AI and semiconductors to automobiles, finance and consumption has clearly flowed in. As a result, the Dow rose and Nasdaq fell, ending mixed. In particular, the wait-and-see attitude was also affected as major events such as employment reports and tariff rulings were set to take place (Dow +0.55%, Nasdaq -0.44%, S&P 500 +0.01%; Russell 2000 +1.10%, Philadelphia Semiconductor Index -1.83%)

*Variables: Realizing Profits, Surveying Consumer Expectations

According to the “2026 AI Investor Outlook” report released by Motelipuri in December, investors still have strong confidence in long-term growth despite the AI bubble controversy. 91% of respondents said they plan to maintain or expand their share of AI stocks over the next year, while 55% expect prices to continue to rise. However, there are also boundaries for short-term volatility, with 74% rating the current valuation as unsustainable, and 41% recognizing that AI stocks are close to the bubble level separated from fundamentals. In other words, it maintains optimism about AI but is estimated to be sensitive to stock prices

Despite Samsung Electronics’ performance exceeding KRW 20 trillion in operating profit, the stock price fell due to the sales of foreigners and institutions, which reflects the realization of profits sold to the news across global AI and semiconductor industries. In terms of actual supply and demand, there is also a trend to prepare for a decline in the option market, such as an increase in out-of-pocket put option open interest for Nvidia (-2.15%).

Meanwhile, the New York Fed’s December consumer expectations survey showed waning confidence in the job market, while short-term inflation worries widened. Expectations for a year rose 0.2%p to 3.4%, while job search expectations fell to 43.1%, the lowest since the survey, while job losses also rose to 15.2%. Access to household finances and credit also deteriorated, with the likelihood of debt delinquency at its highest level since the beginning of the pandemic.

However, the share of expectations for a stock price rise within a year rose to 38.0%, reflecting expectations for a rise in the value of financial assets, households’ perception of the current financial situation has improved. It should be noted that the class that led to the deterioration of financial conditions was below the middle class, while the improvement of financial awareness was centered on the high-income class, suggesting that the K-shaped structure is being fixed. This is seen not only in households but also in the industry as a whole, so the market is more likely to differentiate between industries and stocks than the index as a whole.

*Featured stocks: Semiconductors, pharmaceutical stocks slump Vs. Automobiles rise

Semiconductors: Increasing the desire to realize profits
Nvidia (-2.15%) maintained its buying opinion, saying BOA has strong growth and sufficient valuation appeal, but it fell. In addition, it was positive that the Chinese government could approve H200’s limited imports within this quarter, but it is estimated that the inflow of short-term profit-taking across the semiconductor industry was a burden. Most semiconductor companies, including AMD (-2.54%) and Broadcom (-3.21%), as well as Intel (-3.57%), are sluggish. Intel is up around 2% after hours after Trump mentioned that Intel will produce 2-nano CPUs in the U.S.

Semiconductors: Micron Falls On Profit-Finding Sale Despite Upward Target Stock
Micron (-3.69 percent) raised its price target to $400 by Piper Sandler, saying rising chip prices would accelerate AI-based growth, but fell. This is estimated to be due to the fact that profits have been realized due to the rise in the aftermath of Samsung Electronics’ loss as profit-taking was posted after the company reported slightly exceeding expectations. Western Digital (-6.10 percent), Seagate (-7.72%), and Sandisk (-5.38 percent) also fell sharply. Equipment companies such as ASML (-2.78%), AMAT (-3.61%), and Ram Research (-1.04%) are also sluggish. Qualcomm (+0.93 percent), on the other hand, rose with positive reviews on the launch of new products at CES. The Philadelphia Semiconductor Index fell 1.83 percent

Nuclear Power, Power Grid: Power grid-related companies drop as profit-taking opens
Oklo (Bohab) rose this week on government contracts and nuclear power hearings, but closed flat after digesting the sale. Newscale Power (+1.03%) rebounded on supply and demand factors. GE Bernova (-5.12%) raised its target price by Barclays, saying that AI infrastructure energy demand is solid and growth is expanding, but it fell. It is estimated that it is due to the participation in profit-taking sales rather than any particular variable. Power grid companies such as Constellation Energy (-4.75%) and Vistra (-2.59%) also fell. Bloom Energy (+12.81%) surged on the news that American Electric Power (+1.96%) signed a $2.65 billion contract to use Bloom Energy fuel cells at a power plant in Wyoming.

Cars: Tesla Limited Fluctuations, Ford, GM Jumps Big
Tesla (+1.02%) rose despite Goldman Sachs’ positive assessment of FSD and Robotics, saying they would not be able to drive profits as expected. It is estimated that backlash from the recent decline came from buying. Ford (+4.80%) is rising due to strengthening competitiveness of electric vehicles and securing future growth engines through the introduction of new entry-level electric vehicle platforms and advanced self-driving technologies. GM (+3.93 percent) rose as Piper Sandler upgraded its target stock price and investment opinion, saying it had limited exposure to competition with China.

Secondary Battery, Lithium: Sigma Lithium Reflects Unrealized Mine Production On Stock Price
Quantum Skape (-0.18%) fell, but secondary battery and electric vehicle charging facilities such as Energy (+2.24%), FMC (+2.67%), and ChargePoint (+0.43%) remained strong in the absence of special issues. Sigma Lithium (-15.07%) has a large-scale light that BOA has not yet been realized