[Good Morning Stock Market] Mixed US Stocks Amid Economic Indicator Slowdown... "KOSPI Lacks Momentum"

On the 16th (local time), the New York stock market closed mixed due to weakened economic indicators. On the 17th, the domestic stock market is expected to start higher, but limited movement is anticipated due to a lack of momentum.

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At the New York Stock Exchange (NYSE) on the 16th (local time), the Dow Jones Industrial Average closed at 34,945.47, down 45.74 points (0.13%) from the previous trading day. The large-cap S&P 500 index rose 5.36 points (0.12%) to 4,508.24, and the tech-heavy Nasdaq index increased by 9.84 points (0.07%) to 14,113.67.

The weekly (October 5?11) initial jobless claims in the U.S. were 231,000, an increase of 13,000 from the previous week. This figure exceeded the expert forecast of 222,000 compiled by Dow Jones. This unemployment data can be interpreted as a signal that the cumulative effects of the Federal Reserve's (Fed) rate hikes are gradually impacting the labor market.

Additionally, U.S. import prices in October fell 0.8% compared to the previous month. The Department of Labor explained that the overall import prices declined due to a sharp drop in energy import prices. The October import price was lower than Wall Street's expectations. Following the Consumer Price Index (CPI) and Producer Price Index (PPI), the trend of slowing inflation continues with import prices.

Seokhwan Kim, a researcher at Mirae Asset Securities, said, "The U.S. stock market closed mixed as it digested data indicating a cooling labor market economy," adding, "Market participants expect the economic slowdown to hasten the end of the Fed's tightening cycle and further accelerate the timing of a pivot."

The KOSPI is expected to start up 0.1% to 0.4%. However, limited movement is expected due to a lack of momentum. Jihyun Kim, a researcher at Kiwoom Securities, said, "With the 10-year Treasury yield falling to the 4.4% range and oil prices declining, easing tightening conditions will lead to a higher start, but limited movement is expected due to lack of momentum," adding, "At this point, as the third-quarter earnings season is ending, further upward revisions to earnings estimates are limited, and ultimately, supply and demand will be the factor differentiating stock prices."

Researcher Seokhwan Kim advised, "Since the beginning of this month, the domestic stock market has risen about 9.4%, marking the highest increase in 10 months," adding, "Sectors with significant foreign and institutional demand are semiconductors and software, but individual investors' net buying is concentrated only in secondary batteries. Attention should be paid to how differentiated supply and demand will affect returns."