[Good Morning Stock Market] Gulseubi "Inflation Easing"... "KOSPI Expected to Start Higher"

NVIDIA Rises to 3rd in Market Cap
Domestic AI Stock Sentiment Expected to Expand
"KOSPI Expected to Rise 0.4~0.8%"

[Image source=Yonhap News]

The Korean stock market is expected to start higher on the 15th. The market, which was shaken by the release of the US January Consumer Price Index (CPI), is calming down following dovish remarks by Austan Goolsbee, President of the Chicago Federal Reserve Bank. US Treasury yields and the dollar index fell slightly compared to the previous day, and the New York stock market rebounded across the board.

On the 14th (local time), the Dow Jones Industrial Average closed at 38,424.27, up 151.52 points (0.4%) from the previous session. The S&P 500 index ended the day at 5,000.62, rising 47.45 points (0.96%). The Nasdaq index finished trading at 15,859.15, up 203.55 points (1.3%).

The rise in the US stock market is attributed to a rebound buying following the previous day's decline and comments from Goolsbee, President of the Chicago Fed. At an event hosted by the Council on Foreign Relations (CFR) in New York, Goolsbee said, "Long-term inflation indicators remain positive," and added, "There is no need to be disappointed by the stronger-than-expected January CPI." He emphasized, "We should not get excited over a single month’s CPI being higher than expected. It is clear that inflation is coming down."

The Korean stock market is expected to open higher, supported by Goolsbee’s remarks, the reversal of US Treasury yields, and strength in Nvidia. Nvidia closed at $739.00, up 2.46% ($17.72) from the previous day. Based on the closing price, Nvidia’s market capitalization reached $1.825 trillion, surpassing Alphabet ($1.821 trillion) to rank third in market cap after Microsoft (MS) and Apple. Investment sentiment toward artificial intelligence (AI)-related stocks is also expected to expand in the domestic market.

Han Ji-young, a researcher at Kiwoom Securities, said, "The themes that showed strength yesterday were AI beneficiaries, defense policy stocks, and Chinese consumption?sectors that had been neglected in the low price-to-book ratio (PBR) market?attracting bargain buying." She analyzed, "Over the past two weeks, the domestic market has experienced a low PBR rally independently of the Nasdaq and tech stock strength, so the price attractiveness of growth stocks is expected to increase during short-term profit-taking."

Meanwhile, ahead of the government’s announcement of the 'Corporate Value-Up Program,' positive factors for related stocks are expected to continue. Although there is a short-term overheating concern as the KOSPI has risen more than 5% over the past two weeks mainly in low PBR stocks, foreign capital inflows may increase further due to policy expectations.

Kim Seok-hwan, a researcher at Mirae Asset Securities, forecasted, "The KOSPI is expected to start 0.4?0.8% higher today," adding, "However, with increased buying power from individual investors in the domestic market, a 'theme-driven market' is likely to unfold." He also pointed out, "It is necessary to pay attention to the increased price volatility in the KOSDAQ market."