[Good Morning Stock Market] KOSPI Expected to Rally... Technical Rebound Anticipated

Overnight US Stock Market Rises on Reduced Trump Risk

Amid the overnight rise in the U.S. stock market due to reduced Trump-related risks, the KOSPI is also expected to stage a relief rally on the 23rd.

All three major U.S. indices closed higher on the 22nd (local time). Analysts attribute this to the official withdrawal of President Joe Biden from the U.S. presidential race, which raised expectations for Democratic Party consolidation and eased Trump-related trade concerns, leading to a broad market rally.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed up 127.91 points (0.32%) at 40,415.44. The large-cap focused S&P 500 index rose 59.41 points (1.08%) to 5,564.41, while the tech-heavy Nasdaq index advanced 280.63 points (1.58%) to 18,007.57.

By individual stocks, IT and semiconductor shares showed strength as Vice President Kamala Harris emerged as a leading candidate for the next presidential election, reducing Trump-related risks. Seokhwan Kim, a researcher at Mirae Asset Securities, noted, "Concerns over Trump trade, which had been a pretext for selling in the market last week, have eased, driving the market rise centered on IT and semiconductors. In particular, Nvidia and Tesla expanded their gains due to company-specific issues."

CrowdStrike, which was at the center of last week's global IT turmoil, fell sharply for the second consecutive day, dropping 13%. Its stock price fell to around $264, the lowest level of the year. Some securities firms downgraded their investment ratings citing delayed recovery.

The previous day, the KOSPI closed down 1.14% at 2,763.51. Foreign investors continued their net selling for the fourth consecutive trading day, with institutions also adding to the selling pressure. The KOSDAQ index also closed down 2.26% at 809.96, with both foreign and institutional investors selling.

Today, the domestic stock market is expected to rebound after some time. It is anticipated that a technical rebound will occur mainly in sectors that have experienced significant recent declines.

Researcher Kim said, "With the political balance in the U.S. stabilizing and support from the semiconductor rally, the domestic market is likely to see a relief rally centered on the KOSPI today. However, it is more likely to be a technical rebound rather than a sustained uptrend."