[Good Morning Stock Market] US Stocks Fall on Inflation Concerns... "KOSPI Starts Slightly Lower"

On the 18th, the KOSPI is expected to start slightly lower. The weakness in the New York stock market due to ongoing inflation concerns is likely to weigh on the market.

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On the 15th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 38,714.77, down 190.89 points (0.49%) from the previous session. The S&P 500 also fell 33.39 points (0.65%) to 5,117.09, and the Nasdaq dropped 155.36 points (0.96%) to close at 15,973.17.

Recently released February Consumer Price Index (CPI) and Producer Price Index (PPI) data showed stronger-than-expected results. This raised concerns that inflation is not cooling down as quickly as anticipated. Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "The market is psychologically more cautious after experiencing hot CPI and PPI data."

The upward momentum of Nvidia, which had been leading the market, has weakened. Nvidia showed weakness on 5 out of the last 6 trading days. Additionally, Microsoft, Amazon, and ASML Holding fell more than 2%. Alphabet and Meta also dropped more than 1%. AMD's stock price rose more than 2%.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) fell 2.2%, and the MSCI Emerging Markets Index ETF also declined by 0.6%. Researcher Kim said, "KOSPI 200 futures fell 0.2%," adding, "The KOSPI is expected to start in a slightly lower range."

Recently, the KOSPI surpassed the 2,700 level. However, securities firms expect it will be difficult for further gains to continue. Lee Kyung-min, a researcher at Daishin Securities, stated, "At this point, it is judged that additional level-ups of the KOSPI are not easy," adding, "It is close to the price-to-book ratio of 1 based on confirmed earnings (around the 2,760 level)." He explained, "To achieve a valuation level-up, driving forces such as a decline in interest rates and strengthening economic momentum are needed."