[Good Morning Stock Market] "KOSPI Expected to Start Higher on US Market Tailwind"

On the 8th, the domestic stock market is expected to start higher, buoyed by the U.S. stock market hitting an all-time high.

[Image source=Yonhap News]

On the 7th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 38,791.35, up 130.3 points (0.34%) from the previous trading day. The large-cap S&P 500 index closed at 5,157.36, up 52.6 points (1.03%), breaking its all-time high. The Nasdaq index ended the day at 16,273.38, rising 241.83 points (1.51%).

The market responded positively to Fed Chair Powell’s more dovish remarks compared to the previous day. Chair Powell appeared before the Senate Banking Committee following his testimony to the House of Representatives the day before, stating that interest rates would not be cut immediately but that the time to be confident enough to lower rates was not far off. He said, "When we gain more confidence that inflation is steadily declining to 2%, it will be appropriate to return the current restrictive level of rates to avoid a recession," adding, "We’re not far from it."

Ji-hyun Kim, a researcher at Kiwoom Securities, explained, "The U.S. stock market closed higher, led by growth stocks such as Nvidia (up 4.5%), supported by Chair Powell’s remarks before the Senate indicating that rate cuts are approaching, and the European Central Bank (ECB) meeting which increased the possibility of a rate cut in June, creating a favorable macro environment."

On this day, the KOSPI is expected to start higher, supported by the U.S. stock market’s record highs and the spread of risk asset preference sentiment.

Researcher Ji-hyun Kim said, "While rotation is progressing rapidly, in the KOSDAQ, semiconductor stocks saw profit-taking, whereas the KOSPI is expected to see a simultaneous rise in secondary battery stocks and low price-to-book ratio (PBR) stocks," adding, "Large-cap stocks such as LG Energy Solution, LG Chem, and POSCO Holdings are expected to lead the KOSPI’s rise."

Ji-won Kim, a researcher at KB Securities, said, "The domestic stock market is also expected to show a more relaxed trend compared to the previous day, centered on tech stocks," and added, "Attention should be paid to whether there is a change in foreign investors’ net selling, which had turned negative."