[Good Morning Stock Market] US Stock Market Rebounds and Capital Gains Tax Eased... KOSPI Expected to Start Higher

After the US stock market plunged due to profit-taking selling, it rebounded the next day, and the KOSPI is expected to start higher on the 22nd.

[Image source=AFP Yonhap News]

On the 21st (local time), the Dow Jones Industrial Average at the New York Stock Exchange (NYSE) closed at 37,404.35, up 322.35 points (0.87%) from the previous session. The S&P 500 rose 48.40 points (1.03%) to 4,746.75, and the Nasdaq closed at 14,963.87, up 185.92 points (1.26%). Seokhwan Kim, a researcher at Mirae Asset Securities, said, "There was a rebound buying following the previous day's decline, and expectations of interest rate cuts continued, leading to gains in the US stock market."

All 11 sectors of the S&P 500 rose. In particular, consumer discretionary, healthcare, communication services, information technology (IT), industrials, and materials stocks posted gains of over 1%. Semiconductor company Micron surged 8.6% from the previous close, recording the largest single-day gain this year, supported by solid quarterly results and optimistic outlooks. Nvidia, Intel, and Qualcomm also rose more than 1%. Solar-related stocks such as Maxsun Solar (20.7%), Sunrun (7.0%), and Sunnova (6.1%) were also strong.

Morgan Stanley Capital International (MSCI) Korea Index ETFs and MSCI Emerging Markets Index ETFs rose 1.58% and 1.88%, respectively. Eurex KOSPI 200 futures increased by 0.46%.

Jihyun Kim, a researcher at Kiwoom Securities, predicted, "The domestic stock market will start higher today, supported by the strength of the Philadelphia Semiconductor Index in the US." He added, "Funds may flow into newly listed stocks that have been strong recently and stocks with large declines over the past week among the year-to-date (YTD) top performers. However, the dividend record date, when stocks must be held to receive dividends, is also on the 26th. After that, selling pressure may arise around dividend stocks, so attention should be paid to increased volatility."

Ji-won Kim, Taeyun Sun, and Jeongeun Lim, researchers at KB Securities, also said, "With the US stock market strongly rebounding in just one day, the domestic market is also expected to start higher," adding, "The government’s announcement of easing the criteria for major shareholders subject to capital gains tax the day before is expected to sustain favorable investment sentiment through the end of the year."

Meanwhile, the one-month non-deliverable forward (NDF) won-dollar exchange rate stood at 1,294.1 won, and reflecting this, the won-dollar exchange rate is expected to start down 11 won.