Today's Economic News

📌 Saudi Arabia's Massive Investment Boosts US Stock Market

Saudi Arabia announced a massive $600 billion investment plan, with an additional $400 billion potentiall

y coming in the future. The investment spans various sectors, including defense, IT, and energy. This announcement is seen as a significant boost to the US stock market, especially in the midst of ongoing trade conflicts with China that have raised concerns about earnings.

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📌 AI Stocks Surge – Spotlight on NVIDIA and Palantir

AI-related stocks have been showing strong performance, with NVIDIA and Palantir leading the charge. Saudi Arabia's investment news has further solidified confidence in the AI industry, which is increasingly viewed as an alternative to the Chinese market. Moreover, concerns over low-spec AI products emerging from China have reignited enthusiasm for high-performance AI stocks.

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📌 Relief Following the CPI Report

There were initial concerns that the April Consumer Price Index (CPI) might reflect the impact of tariffs, but the actual figures came out slightly lower than expected. Signs of stagflation (economic stagnation with rising inflation) were not observed, providing relief to the market. Although future indicators could still pose risks after May, the ongoing negotiations between the US and China are likely to keep the impact limited for now.

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📌 Foreign Investors Return to KOSPI, 6-Day Buying Streak

Foreign investors are making their way back to the Korean KOSPI market, marking a six-day streak of net purchases. Notably, these purchases are largely non-arbitrage, indicating a strong interest in the broader market rather than specific stocks. As US-China negotiations progress, foreign investors seem to be focusing on large-cap stocks, driving the index upward.

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📌 Key Gainers – Semiconductors, Chinese Consumer Stocks, Robotics, and Renewable Energy

• Semiconductors: NVIDIA's strong performance has boosted other major semiconductor stocks.
• Chinese Consumer Stocks: Entertainment and cosmetics stocks surged on expectations of strong Chinese consumption.
• Robotics: Policy expectations have lifted shares in the robotics sector.
• Renewable Energy: US stock market strength has also extended to renewable energy stocks.

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📌 KOSPI Trend Reversal, Approaching Annual High

Today, KOSPI broke through a critical trend line and is now approaching its annual high. Since early April, KOSPI has shown a steady rise without any major declines, gaining around 10% so far this year. However, trading volume has not surged dramatically, indicating a cautious optimism. Despite some declines, the Advance/Decline Ratio (ADR) remains high, suggesting continued confidence in the market.

📌 Key Points to Watch:

• Foreign and institutional investor buying patterns by sector
• Focus on large-cap stocks and emerging industries
• When trading volume will surge significantly

Saudi Arabia's investment news has sent positive signals to the US stock market, with AI and semiconductor stocks leading the momentum. KOSPI is also seeing a boost from returning foreign investors, pushing it towards its annual high.

To seize this opportunity, it’s crucial to keep a close watch on supply and demand shifts, as well as