Tech stocks close mixed after lukewarm Nvidia earnings

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Tech stocks close mixed after lukewarm Nvidia earnings

Published: 22 Nov. 2023, 16:34

KIM JU-YEON
[email protected]

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,511.70 points on Wednesday, up 0.05 percent, or 1.28 points, from the previous trading session. [NEWS1]

Shares closed with little change Wednesday, as the U.S. Federal Reserve continued to warn against high inflation and U.S. chip leader Nvidia released lower-than-expected earnings results. The won fell in value against the dollar.

The Kospi was up 1.28 points, or 0.05 percent, to close at 2,511.70.

The Kosdaq dropped 2.40 points, or 0.29 percent, to close at 814.61.

Trade volume was moderate at 433.37 million shares worth 7.66 trillion won ($5.9 billion), with gainers outnumbering losers 428 to 421.

Institutions and individuals sold a combined 159 billion won worth of stocks, offsetting foreigners' stock purchases valued at 144 billion won.

The Dow Jones Industrial Average dropped 0.2 percent, to 35,088.29, overnight, while the tech-heavy Nasdaq shed 0.6 percent to 14,199.98.

Many have suspected that the Fed is reaching the end of its rate-hike cycle and that rate cuts are likely in the first half of 2024. But newly released minutes from the central bank's Nov. 1 policy meeting showed that officials have no intention of easing monetary policy.

Nvidia was expected to release strong quarterly results due to growing demand for generative AI, but the company failed to satisfy its shareholders' high expectations.

In Seoul, most large-cap stocks declined.

Samsung Electronics closed unchanged at 72,800 won, and chipmaker SK hynix fell 0.5 percent to 131,300 won.

LG Energy Solution shed 1.1 percent to 442,000 won, and Korean Air dropped 1.1 percent to 22,350 won.

Among gainers, LG Chem inched up 0.60 percent to 504,000 won, Hanwha Ocean rose 3.2 percent to 27,600 won, Korea Electric Power Corporation climbed 1.1 percent to 18,140 won and HMM grew 0.6 percent to 16,190 won.

Hyundai Motor declined 0.7 percent to 183,000 won, while Kia dropped 0.60 percent to 83,100 won.

The local currency was trading at 1,300.5 won against the dollar, up 11.3 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 2.3 points to 3.668 percent, and the return on the benchmark U.S. 10-year government bonds fell 2.8 points to 4.392 percent.

BY KIM JU-YEON, YONHAP [[email protected]]