[Good Morning Stock Market] US Stocks Close Mixed "KOSPI Expected to Start Up 0.2~0.4%"

US Treasury Yields Rise on Retreating Rate Hike Expectations
Tesla Rises 4.9% on 'Robotaxi Reveal'
General Election and CPI Caution... "KOSPI Starts Slightly Higher"

The KOSPI is expected to start higher on the 9th.

[Image source=Getty Images Yonhap News]

On the 8th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 38,892.80, down 11.24 points (0.03%) from the previous session. The S&P 500 fell 1.95 points (0.04%) to 5,202.39, while the Nasdaq rose 5.44 points (0.03%) to close at 16,253.96.

The market closed mixed amid concerns over rising interest rates, with government bond yields hitting a five-month high, and caution ahead of the Consumer Price Index (CPI). The benchmark 10-year U.S. Treasury yield rose 4.4 basis points (1bp = 0.01 percentage point) to 4.422%, while the 2-year Treasury yield, sensitive to monetary policy, increased 6.1 basis points to 4.793%. Strong U.S. economic data has led to expectations that interest rate cuts may be delayed until the second half of the year, pushing bond yields higher. The March CPI, one of the key inflation indicators, will be released on the 10th.

By stock, Tesla rose 4.9% following CEO Elon Musk's statement that the company plans to unveil its robotaxi on August 8. Albemarle gained 6.7% after UBS raised its target price. Spirit Airlines, which agreed to delay delivery of aircraft ordered from Airbus by about five years and plans to lay off approximately 260 pilots, rose 6.6%. Cryptocurrency-related stocks Coinbase (6.7%) and MicroStrategy (5.1%) surged as Bitcoin hit a three-week high. Paramount Global fell 7.6% amid reports that there are differences in the terms of a potential sale between the largest shareholder and other investors.

Expectations for interest rate cuts are rapidly fading. Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "There is increased upward pressure across the U.S. Treasury yield curve, with a 'bear flattening' phenomenon where short-term yields are rising more than long-term yields, and long-term yields are steadily increasing, adding to concerns over interest rates." He added, "Key figures on Wall Street have warned about the risks of rising long-term yields."

The previous day, the KOSPI closed at 2,717.65, up 3.44 points (0.13%) from the previous session. Foreign demand continued mainly in semiconductors and automobiles, and interest in value-up sectors increased, leading to strength in financials and electric utilities. Samsung Electronics touched 86,000 won intraday for the first time in three years since April 2021. Among sectors, electric utilities recorded the highest gain at 2.29%.

Researcher Kim Seok-hwan said, "The domestic stock market is expected to show cautious sentiment ahead of the general election on the 10th and the U.S. March CPI release," adding, "The KOSPI is expected to start with a 0.2-0.4% rise." He also noted, "The KOSDAQ may see inflows of bargain hunting following the previous day's decline."