[Good Morning Stock Market] US Stocks Close Mixed... KOSPI Expected to Start Slightly Higher

The U.S. stock market closed mixed amid expectations of a slowdown in tightening, and the KOSPI index is expected to start in a firm range on the 12th.

[Image source=Reuters Yonhap News]

On the 11th (local time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 37,711.02, up 15.29 points (0.04%) from the previous session. The S&P 500 index fell 3.21 points (0.07%) to 4,780.24, and the Nasdaq index closed at 14,970.18, up 0.54 points (0.00%). The U.S. stock market experienced increased volatility from the start of trading as the Consumer Price Index (CPI) exceeded market expectations, but later showed signs of easing toward the end of the session due to the perception that the inflation (price increase) downward trend remains valid and mixed factors including conflicting remarks from Federal Reserve (Fed) officials surrounding the CPI.

The U.S. December CPI was 3.4%, exceeding the previous month (3.1%) and forecast (3.2%). The core CPI was 3.9%, down from the previous month (4.0%) but above the forecast (3.8%). Ji-Hyun Kim, a researcher at Kiwoom Securities, analyzed, "Although the CPI exceeded expectations by 0.2 percentage points, the stock market closed flat because the super core inflation excluding housing costs in service prices fell from 3.93% in November to 3.91%, and the Cleveland Federal Reserve Bank’s estimate suggests that the January CPI is expected to slow again, reflecting a preemptive adjustment of expectations for a rate cut in March."

In the S&P 500 index, nine sectors except technology and energy stocks all declined. Apple temporarily lost its position as the largest market cap company to Microsoft (MS) during the session. Tesla fell nearly 3%, and Alphabet (Google) initially rose on news of staff reductions but then turned downward. The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) and MSCI Emerging Markets ETF rose 0.18% and 0.41%, respectively. Eurex KOSPI 200 futures fell 0.42%. Accordingly, the KOSPI index is expected to start in a firm range.

Researcher Kim said, "In a favorable macroeconomic environment due to a moderate CPI result, domestic stocks are expected to see bargain buying inflows following seven consecutive trading days of decline," adding, "Individual issues will continue to drive stock-specific rallies, limiting the upside of the KOSPI index."

Meanwhile, the one-month New York Non-Deliverable Forward (NDF) won-dollar exchange rate was 1,312.26 won, and reflecting this, the won-dollar exchange rate is expected to start down by 1 won.