[Good Morning Stock Market] US Stocks Mixed Ahead of Inflation Data... KOSPI Expected to Start Lower

Overnight, the U.S. stock market closed mixed ahead of the Consumer Price Index (CPI) announcement. On the 12th, the KOSPI is expected to start slightly lower.

On the 11th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 33,684.79, up 98.27 points (0.29%) from the previous session. The Standard & Poor's (S&P) 500 index fell 0.17 points (0.00%) to 4,108.94, while the Nasdaq index closed at 12,031.88, down 52.48 points (0.43%) from the previous session.

[Image source=Yonhap News]

The U.S. market showed weakness mainly in large technology stocks due to profit-taking, but energy and industrial sectors gained strength after the International Monetary Fund (IMF) revised upward the U.S. growth forecast in its World Economic Outlook report, briefly turning the market positive during the session. However, selling pressure expanded again in technology stocks just before the close, resulting in a mixed finish.

Investors' attention is focused on the March CPI report scheduled for release the next day. According to local media, market experts expect the March CPI to rise 0.2% month-over-month and 5.1% year-over-year. This indicates a slowdown compared to the February CPI (0.4% month-over-month, 6.0% year-over-year). Confirmation of a trend of CPI deceleration is expected to have a positive impact on investor sentiment.

The KOSPI is expected to start slightly lower today. Seo Sang-young, Head of Media Content at Mirae Asset Securities, said, "The news that solid growth can continue if financial system instability does not expand, and the fact that most stocks showed strength in the U.S. market, is positive for the Korean stock market," but he also pointed out, "The decline in large technology stocks, semiconductors, and software sectors, which had seen significant gains since the beginning of the year due to profit-taking, is a burden." He added, "Ultimately, as technology stocks that have driven the U.S. market's strength show weakness and rotation occurs, the Korean stock market is also expected to follow this trend," and "The Korean stock market is likely to start slightly lower and face selling pressure."