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Published: 29 July 2026,06:36
Daily Market Analysis New
Key Takeaways:
*Heavy selling pressure in Samsung Electronics and SK Hynix triggered another circuit breaker in the KOSPI, as investors questioned the near-term returns from aggressive AI-related capital expenditure.
*The Nasdaq Composite has fallen more than 7% in July and is trading near its lowest level since May, weighed down by concerns over AI spending, semiconductor competition, and stretched technology valuations.
*Upcoming results from Microsoft, Meta, Apple, and Amazon will be closely watched. Strong earnings and clear evidence of AI monetization could support a rebound, while disappointing results may extend sell-off.
The KOSPI index encountered another circuit breaker in a recent session as heavy selling pressure intensified across its major components. Samsung Electronics and SK Hynix, two of the market’s largest weights, have faced significant declines over the past week. Investors have grown increasingly concerned about the scale of capital expenditure these technology giants are committing to artificial intelligence-related investments. Questions surrounding the near-term returns on these large outlays, combined with broader sector caution, have weighed heavily on sentiment and triggered sharp downward moves in the Korean equity market.
This pressure has extended beyond Asia. The Nasdaq Composite has also come under strong downside pressure and is currently hovering near its lowest levels since May after sliding more than 7% during July. The technology-heavy index has been particularly sensitive to concerns over elevated AI spending, valuation resets, and competitive dynamics within the semiconductor space. Weakness in major chipmakers and growth stocks has contributed to the broader decline, highlighting the market’s heightened focus on the sustainability of the AI investment cycle.
Looking ahead, the earnings reports from Microsoft, Meta Platforms, Apple, and Amazon due this week represent a critical catalyst for the Nasdaq’s next directional move. These companies collectively carry substantial weight in the index, and their commentary on capital spending plans, AI monetization, cloud growth, and free cash flow will be closely scrutinized. Strong results that demonstrate tangible returns on AI investments could help stabilize sentiment and support a rebound. Conversely, any signs of softer guidance, higher-than-expected spending, or weaker margins may reinforce the current cautious tone and extend selling pressure.
In the near term, both the KOSPI and Nasdaq are likely to remain volatile. The interplay between Asian semiconductor performance, U.S. megacap earnings outcomes, and broader macroeconomic signals will shape market direction. Investors should monitor these developments closely, as the results from this week’s key technology reports could determine whether the recent downside momentum continues or begins to reverse.
Technical Analysis
Nasdaq Composite has confirmed a bearish breakout after falling below its asymmetric triangle formation near the 29,000 level. Since the breakdown, the index has declined by more than 4%, reinforcing the bearish outlook and signaling that selling pressure remains firmly in control.
The breakdown from the triangle pattern represents a significant deterioration in the technical structure, suggesting that the previous consolidation phase has resolved to the downside. The latest price action shows Nasdaq testing its immediate support level around 27,700, a critical zone that could determine the index’s next directional move.
Should the index fail to sustain above 27,700, the bearish momentum could accelerate further, paving the way for a decline toward the key 27,000 psychological support level. This area is expected to attract considerable market attention as it represents both a major round-number level and a potential liquidity zone.
If selling pressure intensifies and the broader risk-off sentiment persists, Nasdaq could extend its decline beyond 27,000, exposing the next major downside target near 26,000. Such a move would confirm a deeper correction and reinforce the prevailing bearish trend.
Resistance Levels: 28,880.00, 29,850.00
Support Levels: 26,785.00, 25,850.00
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