[Good Morning Stock Market] US Stocks Weaken Mainly in Tech... "KOSPI Expected to Start Lower"

The U.S. stock market declined due to individual negative issues of major companies and concerns over the slowdown of some economic indicators, leading the KOSPI to also start lower on the 6th.

On the 5th (local time), a trader is working at the New York Stock Exchange (NYSE) in New York City, USA. [Image source=Reuters Yonhap News]

On the 5th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 38,585.19, down 404.64 points (1.04%) from the previous trading day. The S&P 500 index, focused on large-cap stocks, fell 52.3 points (1.02%) to 5,078.65, and the Nasdaq index ended the session down 267.92 points (1.65%) at 15,939.59.

Han Ji-young and Kim Ji-hyun, researchers at Kiwoom Securities, explained, "The cautious sentiment ahead of Federal Reserve Chairman Jerome Powell's remarks, along with individual corporate negative factors such as decreased sales of Apple and Tesla in China, exerted downward pressure." Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The decline reflected individual negative issues of major companies like Apple and Tesla and concerns over the slowdown of some economic indicators."

Apple fell 2.84% following news that its market share in the Chinese smartphone market dropped from 19% last year to 15.4%, and its ranking fell from 2nd to 4th. Tesla also declined 3.93% amid reports of reduced shipments from its Chinese factory the previous day and subsequent reports of a shutdown at its German factory. Microsoft (MS) and Netflix also dropped 2.96% and 2.81%, respectively. However, Nvidia succeeded in reversing its decline and showed a dominant performance.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) fell 1.97%, and the MSCI Emerging Markets Index ETF dropped 0.89%. Eurex KOSPI 200 futures declined 0.96%. Accordingly, the KOSPI is expected to start down around 1%.

Researchers Han Ji-young and Kim Ji-hyun stated, "Price adjustments in major risk asset groups such as Nasdaq and Bitcoin, weak U.S. January Institute for Supply Management (ISM) Services Purchasing Managers' Index (PMI), and cautious sentiment ahead of Chairman Powell's House testimony will exert downward pressure. From an industry perspective, the weakness of Apple and Tesla, which had significant declines the previous day, is expected to trigger a standoff between 'buying the dip or further selling' in related domestic stocks, increasing intraday supply-demand volatility."

Meanwhile, the one-month non-deliverable forward (NDF) won-dollar exchange rate in New York stood at 1,334.2 won, and the won-dollar exchange rate is expected to start steady on the day.