The domestic stock market staged a strong rebound on the last trading day of July. Market attention is now focused on whether the upward trend can continue into the first trading day of August.

Strength in U.S. stock markets and expectations for improved corporate earnings are underpinning investor sentiment. However, some analysts note that external variables, including geopolitical risks in the Middle East, must also be monitored.

On July 31, the KOSPI closed at 6,595.45, surging 1,001.89 points (17.91%) from the previous trading day. This reflects a rapid recovery from the recent sharp decline and a significant rebound in investor sentiment.

Most large-cap stocks by market capitalization also showed strong upward momentum. SK Hynix jumped 29.95% to 1,718,000 won, hitting the daily limit, while SK Square (29.91%) and Samsung Electro-Mechanics (29.92%) also recorded gains near the daily limit. Samsung Electronics climbed 26.81% to 262,500 won, and Samsung Electronics Preferred (26.49%), Hyundai Motor (10.54%), and Samsung Life Insurance (17.99%) also posted sharp gains.

On the other hand, Samsung Biologics fell 2.75% to 1,485,000 won, making it the only major large-cap stock to show weakness. LG Energy Solution (2.50%) and KB Financial Group (0.66%) were limited to relatively modest gains.

■ "U.S. Stock Market Strength Provides Support; Middle East Risk a Variable"

The market expects that key domestic and international variables will determine the market's direction on the first trading day of August.

First, U.S. stock markets closed higher on July 31 (local time), helped by strong earnings from Amazon and others. The Dow Jones Industrial Average rose 0.53%, the S&P 500 Index gained 0.70%, and the Nasdaq Composite Index increased 1.00%, supporting investor sentiment.

However, tensions in the Middle East remain a concern. Recent incidents, including an attack on an oil tanker near the Strait of Hormuz, have continued to create uncertainty in maritime logistics, and international oil prices are facing upward pressure.

On July 31 (local time), the September Brent crude oil futures contract on the ICE Futures Exchange closed at $90.12 per barrel, up 1.2% from the previous session. On the New York Mercantile Exchange, the September West Texas Intermediate (WTI) crude oil futures contract closed at $84.67 per barrel, up 1.3%.

Rising energy prices could influence inflation concerns and interest rate forecasts, which may in turn increase volatility in the domestic stock market.

All eyes are on whether the KOSPI can sustain its rebound in the first trading session of August.

[※ This article is intended to provide information on market trends and does not constitute investment advice. Investment decisions and their consequences are the sole responsibility of the investor.]