[Good Morning Stock Market] US Stock Market Ends Mixed, KOSPI Expected to Start Slightly Lower

While the US stock market closed mixed after fluctuating throughout the session, the domestic stock market is expected to start slightly lower.

[Image source=Yonhap News]

On the 24th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 42.77 points (0.11%) from the previous trading day to close at 38,460.92. The large-cap-focused S&P 500 index rose 1.08 points (0.02%) to 5,071.63, and the tech-heavy Nasdaq index closed up 16.11 points (0.10%) at 15,712.75.

Last night, the US stock market closed mixed as long-term 10-year bond yields rose in the US and major European countries. Notably, Australia's March Consumer Price Index (CPI) rebounded, and Joachim Nagel, President of the Bundesbank, warned that "the wage-price spiral could delay interest rate cuts due to high service prices," increasing downward pressure on the stock market.

The main indices fluctuated, but some individual stocks showed strength. Tesla's Q1 earnings fell short of market expectations, but the stock surged 12% as the market perceived that the decline of over 40% since the beginning of the year had already been priced in. Additionally, Texas Instruments reported earnings that exceeded market expectations, rising 5.6%. Semiconductor-related stocks such as ON Semiconductor (+6.2%), Microchip Technology (+5.2%), and Analog Devices (+3.5%) also rose together. On the other hand, Boeing posted better-than-expected Q1 earnings despite market concerns, but the impact of an accident earlier this year weighed on the stock, which fell 2.9%.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 0.3%, and the Emerging Markets Index ETF increased by 0.4%. Eurex KOSPI 200 futures fell 0.6%. Considering this, the KOSPI is expected to start slightly lower today.

The rise in long-term bond yields in major countries such as the US and Europe is expected to increase downside risks for the domestic stock market. Kim Seok-hwan, a researcher at Mirae Asset Securities, noted, "It is especially necessary to pay attention to profit-taking following the sharp rise the previous day."

Han Ji-young, a researcher at Kiwoom Securities, analyzed, "While some profit-taking may occur, the market is expected to maintain the lower end of the 2600 level, with a stock-specific market centered on small and mid-cap stocks that have been oversold. By sector, short-term inflows may occur in secondary battery materials and equipment, which have relatively low valuation burdens." He added, "Power equipment has additional upside potential as demand for artificial intelligence (AI) and data centers is reconfirmed."

Meanwhile, the 1-month non-deliverable forward (NDF) USD/KRW exchange rate in New York was 1,376 won, and reflecting this, the USD/KRW exchange rate is expected to start 5 won higher.