[Good Morning Stock Market] US Stock Market Closes Higher... KOSPI Also Expected to Show Moderate Gains

[Image source=Yonhap News]

As expectations for an interest rate cut within the year revived, the U.S. stock market closed higher, and the domestic stock market is also expected to start on a firm note on the 10th.

All three major indices of the New York Stock Exchange rose on the 9th (local time). Signals of a slowdown in the labor market were detected due to an increase in new unemployment claims, spreading expectations for an interest rate cut within the year and reviving investor sentiment. Treasury yields also fell, driving the index gains.

On that day at the New York Stock Exchange (NYSE), the blue-chip-focused Dow Jones Industrial Average closed at 39,387.76, up 0.85% from the previous session. This marked the seventh consecutive day of gains, the longest streak this year. The large-cap S&P 500 index rose 0.51% to 5,214.08, and the tech-heavy Nasdaq index closed up 0.27% at 16,346.26.

The market, which had fallen early in the session due to weak corporate earnings, turned upward after the release of employment data. The U.S. Department of Labor announced that new unemployment claims for the week of April 28 to May 4 totaled 231,000, the highest in eight months since August last year. This significantly exceeded Bloomberg experts' forecast of 212,000. Continuing claims, which count those filing for unemployment benefits for at least two weeks, were 1,785,000 for the week of April 21 to 27, an increase of 17,000 from the previous week.

The U.S. Federal Reserve (Fed) is monitoring related indicators, viewing an overheated labor market as a potential driver of inflation. Philip Colmar, Global Strategist at MRB Partners, analyzed, "The data provides the Fed an opportunity to lean toward a dovish (monetary easing preference) stance," adding, "The market is interpreting the sharp rise in new unemployment claims announced today as a positive factor."

On the previous day, the domestic stock market closed lower amid overlapping option expirations. The KOSPI, having lost upward momentum, fell more than 1% to close at 2,712.14. This was influenced by foreign investors halting their seven-day consecutive buying trend and turning to selling. HD Hyundai Marine Solutions, which was the top net-sold stock by foreigners, closed down 7% at 152,300 won on its second day after listing. The KOSDAQ also ended trading down 0.26% at 870.15.

The KOSPI is expected to start the day with a firm rise of 0.2 to 0.4%.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "Although the market showed weakness due to the liquidation of option expiration volumes and the recent adjustment in foreign investor flows, a favorable environment for expanding risk asset exposure continues as the global bond yield downtrend persists. However, attention should be paid to the exchange rate, which is stabilizing despite the Japanese government's efforts to defend the yen's value last week."