U.S. stocks open for profit-taking after dollar strengthens, Micron fallout continues to slide

09/25 U.S. stocks open for profit-taking after dollar strengthens, Micron fallout continues to slide

The U.S. stock market started higher on the back of the previous day’s drop and the inflow of backlash buying. However, it turned downward as uncertainties about monetary policy were highlighted, such as the strong dollar during the day and rising interest rates on government bonds. Of course, it is not an issue that has a decisive effect on the stock market, but it can be said that the desire for profit-taking, which has been continuing since the previous day, is expanding despite such small changes. In particular, as Micron (-2.82%) fell due to its performance that exceeded expectations and the announcement of guidance, the process of digesting the sale was affected (Dow -0.37%, Nasdaq -0.33%, S&P 500 -0.26%, Russell 2000 -0.92%, Philadelphia Semiconductor Index -0.18%)

*Variables: Strong dollar and strong desire to realize profits

The dollar/won rose above 1,400 won to 1,403.80 won in the evening session, mainly due to the strong dollar. The dollar strengthened against other exchange rates, reflecting expectations for the U.S. economy as the number of new home sales rose sharply. On top of that, uncertainty over the Fed’s rate cut also strengthened, based on Fed Chairman Powell’s cautious remarks the day before. Of course, the market expects two more rate cuts this year, considering that the PCE price index, which will be released on Friday, will be slower than last month’s figures. Nevertheless, after Powell’s remarks, the dollar strengthened and government bond rates rose, noting economic data, and the stock market opened for profit-taking and fell mainly in technology stocks.

The weakening of the euro and yen also affected the dollar. The euro weakened against the dollar, reflecting economic instability as Germany’s Ifo business environment index contracted. Amid economic instability in France and other major countries, it can be said that the weakening of the euro led to the confirmation of economic instability in Germany as economic indicators. The yen weakened in the run-up to the election of the next prime minister in October, as Takaiichi, one of the leading candidates, mentioned that high interest rates could cause anxiety to businesses

In general, there were no decisive factors that led to the decline in the stock market, but such a strong dollar and rising Treasury yields raised uncertainty about monetary policy, stimulating the desire for profit-taking. The fact that Powell mentioned the previous day that “the stock index is currently in the overvalued area” and that Micron (-2.82%) fell as a profit-taking sale despite its good performance further encouraged this. In the end, the market seems to be going through a process of digesting the sale rather than a bad news. Nevertheless, the stock price is still sensitive to small favorable materials, and the decline is still limited.

*Featured Stocks: Tesla, Intel Up Vs. Oracle, Palantir, Micron Down

Semiconductors: Micron Falls On Profit-Making Sale Vs. Intel Surges Amid Positive Materials
Micron (-2.82%) fell despite better-than-expected earnings and guidance. The market is already largely reflected in stock prices, so it is estimated that profit-taking properties have been opened. Nvidia (-0.82%) started higher on the announcement of physical AI cooperation with Alibaba, but profit-taking properties have been released, increasing volatility after a downward shift. AMD (-0.01%) rose on the news of expanding cooperation with corporate AI company Koheer, but turned lower on the market. Broadcom (+0.11%) also fluctuated.

Intel (+6.41%) is also positive about the U.S. administration’s acquisition of a stake in lithium America and Treasury Secretary Bessent’s mention of Intel’s increased utilization. Ahead of the close of the market, the gains were expanded as news of a proposal to invest billions of dollars in Apple and closer cooperation were also mentioned. It is also positive that Marvell Tech (+7.33%) approved a new $5 billion share buyback program and signed a $1 billion share buyback contract. TSMC (-0.71%), ASML (-1.72%), and RAM Research (-2.54%) were sluggish, but Qualcomm (+2.37%) remained solid. Philadelphia’s semiconductor index fell 0.18%. Other AI-related companies such as UIPass (-1.68%) and Big Bear AI (-5.01%), as well as server companies such as Arista Network (-1.01%) and Seagate (-1.94%) are sluggish

Automobiles: Tesla Rises On Expectations Of Higher Q3 Vehicle Deliveries
Tesla (+3.98%) rises as Wolf Research reports stronger-than-expected third-quarter results. In particular, it noted that deliveries in the third quarter could reach 46.5 to 47.0 million units, exceeding expectations (44.5 million units). This comes as consumers rushed to buy ahead of the expiration of the electric vehicle tax credit and an optimistic outlook for Chinese shipments. Of course, purchases could weaken in the fourth quarter and the increase in deliveries in China in September is good news, but the fact that it is still slowing compared to the previous year can be said that the market reacted to the favorable situation right away. Rivian (+1.67%) and Lucid (+3.33%) are also doing well. Secondary battery company QuantumScape (-7.69%) is sluggish. GM (+2.29%) raised its investment opinion to buy, expecting UBS to recover its profit margin to the 8-10% range due to various factors, including a rate cut despite tariff concerns. Ford (-0.85%) falls lower

Lithium-Related Stocks: Lithium America Soars On U.S. Administration’s 10% Stake
Lithium America (+95.77%) rose sharply the previous day after news broke that the Trump administration would acquire a 10% stake on loan grounds. The stake acquisition is part of the process of renegotiating the terms of a $2.26 billion federal loan that Lithium America has already signed to develop the Thacker Pass mine in Nevada. In particular, the stake acquisition suggests the government’s move to directly participate in the strategically important raw material industry, which has led to a surge in expectations. Of course, there were many short selling stocks, so the inflow of short squeeze and the stock price of memes soared. Albemarle (+1.82%), SQM (+1.16%), Standard Lithium (+20.14%) and Sigma Lithium (+7.38%) are also strong

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