[Good Morning Stock Market] US Stock Market Rises as CPI Uncertainty Eases, KOSPI Expected to Start Slightly Higher

As the US stock market closed higher amid the resolution of uncertainties surrounding the Consumer Price Index (CPI), the domestic stock market is expected to start with a slight gain.

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On the 12th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 235.83 points (0.61%) from the previous trading day to close at 39,005.49. The S&P 500, which focuses on large-cap stocks, increased by 57.33 points (1.12%) to 5,175.27, while the tech-heavy Nasdaq rose 246.37 points (1.54%) to close at 16,265.64.

The US stock market eased investors' anxiety as last month's CPI met market expectations. Oracle surged 11.75% after reporting strong earnings driven by increased demand for artificial intelligence (AI), marking its largest daily gain since December 2021. Additionally, the semiconductor sector showed broad strength with Nvidia (+7.2%) and AMD (+2.2%) among the leaders.

Seokhwan Kim, a researcher at Mirae Asset Securities, explained, "The Federal Reserve's (Fed) limited policy stance will be maintained, but expectations for interest rate cuts as early as June have turned into confidence, further strengthening the preference for risk assets. Oracle's announcement of increased sales due to a surge in AI server demand reaffirmed robust AI demand, which led to strength across the semiconductor sector and optimistic investment sentiment toward large tech stocks."

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 1.5%, and the Emerging Markets Index ETF increased by 1.1%. Eurex KOSPI 200 futures rose 0.5%. Considering this, the KOSPI is expected to start the day with a slight gain.

Currently, the domestic stock market is experiencing both upward and downward factors, including the simultaneous expiration of futures and options contracts later this week and expectations for interest rate cuts. Ji-young Han, a researcher at Kiwoom Securities, said, "Until the March Federal Open Market Committee (FOMC) meeting scheduled next week, there will likely be no strong directional bets on indices or specific sectors. Instead, a cautious market will frequently emerge, leading to a rotation of funds within the stock market."

Meanwhile, Kim added, "The preference for risk assets by foreign investors due to the global stock market's positive performance and the stable flow of the won-dollar exchange rate are expected to have a positive impact on the domestic stock market's upward trend. A positive spillover effect is anticipated across the semiconductor industry value chain due to the recovery in the semiconductor business environment and improved earnings."

On the same day, the one-month non-deliverable forward (NDF) won-dollar exchange rate in New York was 1,310 won, reflecting an expected 2 won decline in the won-dollar exchange rate at the start of trading.

This content was produced with the assistance of AI translation services.