05/01 U.S. stocks open mixed after rising on solid earnings and U.S.-Iran expectations

The U.S. stock market started higher, noting the companies’ performance, with Apple (+3.24%) rising sharply after the earnings announcement. In addition, the fall in international oil prices and government bond rates as expectations related to the end of the war in Iran were highlighted. In addition, it is also favorable that software companies have risen in expectations that they can combine with AI to increase profitability. In addition, the supply and demand aspects are positive, such as the rise of semiconductor storage companies in addition to the supply and demand factors ahead of the expiration of the Weekly option. However, changes such as the return or fall of gains continued to be made due to the recent rise in profit-making sales, and eventually closed in the mix (-0.31% Dow, +0.89% Nasdaq, +0.29% S&P 500, +0.29% Russell 2000 +0.46% and Philadelphia Semiconductor Index +0.87%)

*Variants: US-Iran, Software Industry, ISM Manufacturing Index

While it was reported that Iran delivered a response to the U.S. amendment to the previous agreement proposed by the U.S. through Pakistan, Iran’s foreign minister explained his position on ending the war to six countries, including Turkey, Egypt and Saudi Arabia. In addition, it is reported that the U.S. believes that negotiations can be resumed on the condition of the full opening of Iranian ports and Iran’s opening of the Strait of Hormuz. When the conditions related to the negotiations to end the war in Iran were announced, the market said, “There are high expectations,” and international oil prices fell and the stock market expanded.

During the meeting, U.S. President Trump complained that Iran wanted to negotiate, but he was not satisfied with Iran’s proposal, but insisted that the negotiations were progressing. However, during the conversation with reporters, he made mixed remarks about dialogue with Iran, but the market focused on the big impact of progress in negotiations and limited its impact.

Meanwhile, the strong performance of software companies also has a positive impact on the market. Atlasian (+29.58%) announced earnings to ease alternative concerns that Generative AI will threaten the existence of SaaS companies. Until now, the market has expected AI models such as Antropic’s Claude and GPT to replace existing software tools by performing workflow and coding directly, which has led to a steady decline in related stocks this year. However, Atlasian announced that cloud sales have skyrocketed, and that it is gathering on its platform to take advantage of AI capabilities, and that long-term contracts are also expanding.

As a result, Atlantic’s performance shows that AI can be a catalyst for increasing the value of existing platforms, rather than culling software. Major investment banks, including Morgan Stanley, analyze that this growth suggests that pessimism, which has weighed on the software sector, has been an error. In addition, Reddit (+13.07%) also has a positive impact on the rapid increase in advertising sales despite the spread of AI. This has contributed to easing fears that AI will undermine platform traffic and profit models. This leads to confidence that AI can be a means to complement and strengthen profitability rather than weaken the existing tech ecosystem, contributing to the rise of software companies

Meanwhile, the ISM manufacturing index was released at 52.7, maintaining its expansion for the fourth consecutive month. However, solid demand and steep cost increases are in conflict. In particular, expectations for future production growth are highlighted as new orders have expanded, the inventory index has reached 39.1, and remains very low. However, the employment index continued to contract, especially the price index surged to 84.6 and reached a two-year high, stimulating inflation. This is directly attributed to the surge in oil prices and the burden of tariffs on China due to the war in Iran, which puts pressure on companies’ margins. As a result, the manufacturing industry shows that despite the recovery of demand, costs, job insecurity, and falling exports are causing burdens. After the announcement of the results, the market impact was limited, but it should be noted that it plays a leading role in Korean exports

*Featured Stocks: Apple, Tesla, SanDisk, Software Rise Vs. Nvidia Continues To Fall

Semiconductors: Nvidia Plumbs Today After Falling Significantly The Day Before Due to Aggravated Competition Issues
Nvidia (-0.56%) rose on news that it had signed a new contract to deploy advanced AI tools in its confidential U.S. military network, but its volatility expanded as it turned downward today, reflecting intensifying competition issues. Broadcom (+0.92%) continued to rise, citing expectations from companies such as TPU for its own chip growth. AMD (+1.71%) continued to rise ahead of the earnings announcement. Intel (+5.44%) expanded after turning upward on news that U.S. antitrust authorities approved investment in AI chip start-up Samba. With acquisition negotiations collapsing in March, it has a positive impact on its strategy to cooperate in AI reasoning through alliances rather than complete technology absorption through equity investments. The Philadelphia Semiconductor Index rose 0.87% .

Semiconductor Storage: SanDisk And Others Fall On Earnings Announcement, But We’re Hilarious With Long-Term Growth Expectations
SanDisk (+8.25%) announced better-than-expected earnings, but it has also fallen sharply due to the release of profit-making sales due to soaring prices. In the meantime, as some investment companies raised their target stock prices, volatility expanded, such as successful conversion, and the rise was expanded due to the power of options. Western Digital (-0.69%) announced better-than-expected earnings and strong outlook, but fell sharply due to the release of profit-making sales. However, the decline was narrowed in anticipation of the prolonged strong performance of SanDisk and other storage companies. In the meantime, Seagate (+7.91%) announced that AI will reorganize its hard drive demand by 2027 and all products will be sold out by 2027, expanding its gains and having a positive effect on storage companies. Micron (+4.84%) also succeeded in turning upward due to this trend.

Semiconductor Equipment, Power Semiconductors: Losses as Profit-Making Sales Open
Monolithic Power (-1.92 percent), a power semiconductor company, fell, reflecting higher market expectations despite solid earnings reports. In addition, high desire to realize profits is also burdensome. Texas Instruments (-0.02%) and Analog Devices (-1.14%) are mostly powered