[Good Morning Stock Market] US Stocks Rise Ahead of PCE Release... "Domestic Market Watches Global Events"

First TV Debate of the US Presidential Election

The U.S. stock market closed higher as optimism grew ahead of the release of the May Personal Consumption Expenditures (PCE) data. Concerns over high interest rates and inflation appeared to ease amid signals of an economic slowdown. On the 28th, the domestic stock market is expected to focus on global events such as the first U.S. presidential debate and month-end supply-demand changes, according to securities industry analysis.

[Image source=Reuters Yonhap News]

On the 27th (local time), the three major U.S. stock indices closed slightly higher. At the New York Stock Exchange (NYSE), the blue-chip-focused Dow Jones Industrial Average rose 36.26 points (0.09%) from the previous trading day to close at 39,164.06. The large-cap-focused S&P 500 index increased by 4.97 points (0.09%) to 5,482.87, and the tech-heavy Nasdaq index rose 53.53 points (0.3%) to close at 17,858.68.

By individual stocks, Amazon, which surpassed a market capitalization of $2 trillion for the first time the previous day, rose by over 2%. Micron, which released earnings after the market closed the previous day, fell 7.12% amid disappointment as its results met market expectations. Nvidia also declined by 1.9%, showing weakness. Naver Webtoon (WBTN) surged 9.52% on its Nasdaq debut. WBTN's listing value is approximately $2.9 billion (4 trillion KRW).

Kiwoom Securities researchers Ji-young Kim and Ji-young Han said, "Economic slowdown signals such as the further downward revision of the U.S. Q1 GDP growth rate and consecutive increases in unemployment claims eased concerns over prolonged high interest rates and PCE inflation." They added, "Except for Nvidia, big tech showed a positive trend. The weakness in the semiconductor sector is seen as a healthy short-term correction, and a rebound in AI-related stocks is expected around mid-next month when Microsoft, Alphabet, and Meta release earnings."

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 0.84%, and the MSCI Emerging Markets Index ETF increased by 0.07%. Eurex KOSPI 200 futures rose 0.29%.

Researcher Seok-hwan Kim of Mirae Asset Securities said, "Oil prices hit a two-month high, and cryptocurrency Solana surged on news of a spot ETF application. Gold rebounded from a three-month low," adding, "The domestic stock market should pay attention to global major events and month-end supply-demand changes today."

Researchers Ji-young Kim and Ji-young Han predicted, "Despite a relaxed macroeconomic environment with slowing U.S. economic indicators and falling market interest rates, the domestic stock market will show limited fluctuations due to cautious sentiment ahead of the PCE inflation index release and the U.S. presidential TV debate."

They further noted, "If former President Trump’s chances of winning increase, concerns over short-term U.S. fiscal expansion due to tax cuts and deregulation policies will emerge, putting upward pressure on government bond yields. Increased volatility is also expected in secondary battery and renewable energy-related stocks."

Meanwhile, the one-month non-deliverable forward (NDF) won-dollar exchange rate in New York stood at 1,385.29 won, and the won-dollar exchange rate is expected to start the day down by 1 won.