[Good Morning Stock Market] US Tech Stocks Soar... KOSPI Expected to Start Higher

Last week, the U.S. stock market reached its highest level in seven weeks, driven by gains in major tech stocks known as the 'Magnificent 7.' The KOSPI index is also expected to start higher on the 13th.

On the 10th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 34,283.10, up 391.16 points (1.15%) from the previous session. The Standard & Poor's (S&P) 500 index rose 67.89 points (1.56%) to 4,415.24, and the Nasdaq index gained 276.66 points (2.05%) to close at 13,798.11. The S&P 500 surpassed 4,400, marking its highest level since September 19.

Federal Reserve (Fed) Chair Jerome Powell said the day before that he is "still not confident" whether the policy stance is restrictive enough to bring inflation back to target. He emphasized, "We will not hesitate to tighten policy further if appropriate."

[Image source=Yonhap News]

Although the market, which had been expecting dovish remarks, expressed disappointment, the broader expectation of an end to rate hikes was maintained. Treasury yields remained steady, closing at levels similar to the previous day. Market attention is focused on the Consumer Price Index (CPI) report to be released this week.

Looking at individual sectors, all 11 sectors within the S&P 500 rose, with technology stocks climbing more than 2%, leading the index higher. Nvidia rose 2.95%, and Microsoft also gained 2.49%, hitting record highs. Telecommunications, consumer discretionary, industrials, materials, and financial sectors also rose more than 1%.

The KOSPI is expected to open 0.6% to 1.0% higher today. Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "It is very rare to see such clear sector preferences in the domestic stock market as this year," adding, "Foreign investors have recorded net purchases of about 2 trillion won this month, with 90% of the net buying amount in semiconductors." He continued, "The semiconductor sector's year-to-date return is 35%, significantly outperforming the domestic market's 11.5% gain," and added, "TSMC's announcement that its October sales increased 16% year-over-year and 35% month-over-month will further strengthen these fundamentals."