[Good Morning Stock Market] US Stocks Hesitate Despite Positive News... "KOSPI Starts Slightly Lower"

On the 6th, the domestic stock market is expected to start in a slightly weak range. As the US stock market closed mixed due to concerns over the previous rise, the domestic stock market is also likely to see heightened caution, with year-end major shareholder capital gains tax avoidance selling emerging.

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On the 5th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 36,124.56, down 79.88 points (0.22%) from the previous session. The S&P 500, centered on large-cap stocks, recorded 4,567.18, down 2.60 points (0.06%). The tech-heavy Nasdaq index closed up 44.42 points (0.31%) at 14,229.91.

The US stock market ended mixed amid a wait-and-see stance. Employment indicators suggesting a slowdown in the labor market declined, and Treasury yields also fell. However, concerns from the previous rise weighed on the market.

The US job openings for October, released that day, fell to the lowest level in two and a half years. According to the US Department of Labor's October Job Openings and Labor Turnover Survey (JOLTs) report, new job openings totaled 8.73 million, down about 610,000 from the previous year. This figure was far below Dow Jones' estimate of 9.4 million and marked the lowest level since early 2021.

As a signal of labor market slowdown, US Treasury yields declined. The 10-year Treasury yield dropped to around 4.17%. The 2-year yield, sensitive to monetary policy, fell to about 4.58%. The Dollar Index, which measures the value of the dollar against the currencies of six major countries, moved above 103.9, up more than 0.2% from the previous session.

The KOSPI is expected to start in a slightly weak range that day. Han Ji-young, a researcher at Kiwoom Securities, explained, "Debates over the Federal Reserve's rate cuts and economic trajectory will continue," adding, "Due to year-end domestic individual major shareholder capital gains tax avoidance selling and caution, the stock price movement is expected to remain stagnant." She further noted, "Although Moody's downgrade of China's credit rating outlook could be a burden, the European stock market, which is relatively sensitive to China's economic direction, remained firm. Therefore, the impact of changes in the Greater China stock market on the domestic market is expected to be limited."

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "Although the US stock market showed mixed trends, the domestic market is expected to face growing concerns over demand slowdown in key industries such as secondary batteries amid global economic slowdown pressures," adding, "With concerns over falling commodity prices and oversupply, a conservative approach and attention are necessary."