[Good Morning Stock Market] US Stocks in Wait-and-See Mode Before February Inflation Data... "KOSPI Expected to Start Slightly Up"

PCE Price Index for February Scheduled on 29th... Mixed Trends
Positive GDP and Employment Indicators Raise Hopes for Soft Landing of US Economy
80,000 Electronics After 27 Months... "Focus on Semiconductor-Led Rally"

On the 29th, the KOSPI is expected to start in a slightly positive range.

[Image source=Reuters Yonhap News]

On the 28th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 39,807.37, up 47.29 points (0.12%) from the previous session. The S&P 500 index rose 5.86 points (0.11%) to 5,254.35, while the Nasdaq index closed down 20.06 points (0.12%) at 16,379.46. Both the Dow Jones Industrial Average and the S&P 500 reached all-time highs.

Overall, the market showed mixed trends ahead of the February Personal Consumption Expenditures (PCE) price index release. Positive investor sentiment continued due to the better-than-expected U.S. fourth-quarter Gross Domestic Product (GDP) and strong employment data. The finalized GDP growth rate for Q4 2023 was revised upward by 0.2 percentage points to 3.4%, compared to the preliminary figure of 3.2% announced last month. New weekly jobless claims for the week of the 17th to 23rd totaled 210,000, slightly below the market expectation of 212,000. Both indicators raised expectations for a soft landing of the U.S. economy.

Looking at individual stocks, Nvidia (0.12%) rebounded slightly after three trading days due to bargain hunting following recent declines. Tesla (-2.25%) showed weakness amid concerns over intensified competition following Xiaomi’s announcement of an electric vehicle launch. Est?e Lauder rose 6.28% after Bank of America (BofA) upgraded its investment rating, positively evaluating the company’s revenue model changes. Amid rising international oil prices, ExxonMobil (1.10%) and Marathon Petroleum (2.29%) continued their upward trends. West Texas Intermediate (WTI) crude oil for May delivery rose $1.82 (2.2%) to $83.17 per barrel compared to the previous trading day. Reddit, which had attracted market attention by rising up to 120% above its IPO price ($34) since its Nasdaq listing on the 21st, plunged 14.60% following news of insider stock sales.

The U.S. stock market will be closed on the 29th in observance of Good Friday ahead of Easter. Market reactions to the February PCE price index released on the 29th are expected to be confirmed next week.

The previous day, the KOSPI closed at 2,745.82, down 9.29 points (0.34%) from the previous session. Among the top 10 market capitalization stocks, all closed lower except Samsung Electronics (1.25%), which surpassed 80,000 KRW for the first time in 2 years and 3 months based on closing price.

Park Gwangnam, a researcher at Mirae Asset Securities, said, "Although the U.S. market showed a cautious stance ahead of the February PCE price index release and the holiday, considering the continued record rallies of the Dow and S&P 500, the Korean market is also expected to start in a slightly positive range. Attention will be focused on whether the semiconductor-led rally can continue, as Samsung Electronics settled at 80,000 KRW amid expectations of improved earnings due to rising NAND prices."