[Good Morning Stock Market] US Market Tailwind... "KOSPI Expected to Start Higher"

Due to a favorable foreign exchange environment such as the won's strength and positive momentum in the U.S. stock market, the KOSPI index is expected to start higher on the 20th. Additionally, influenced by the overnight strength in U.S. semiconductor stocks, related domestic stocks are also expected to recover their losses in a rebound market.

[Image source=Yonhap News]

The three major indices of the U.S. New York stock market all rose on the 19th (local time). This was due to renewed buying ahead of the Jackson Hole meeting scheduled for this week.

On that day in the New York stock market, the blue-chip-focused Dow Jones Industrial Average closed at 40,896.53, up 236.77 points (0.58%) from the previous trading day. The large-cap-focused S&P 500 index rose 54 points (0.97%) to 5,608.25, and the tech-heavy Nasdaq index closed at 17,876.77, up 245.05 points (1.39%). Both the S&P 500 and Nasdaq indices recorded their first eight consecutive days of gains since the beginning of the year.

Market attention is focused on the Jackson Hole meeting, held over three days starting on the 22nd in Wyoming. The Jackson Hole meeting is an annual economic policy symposium attended by central bank officials from major countries. It is expected that hints regarding the September Federal Open Market Committee (FOMC) interest rate decision can be gleaned from the speech by Jerome Powell, Chair of the U.S. Federal Reserve, scheduled for the morning of the 23rd.

On this day, the domestic stock market is expected to show a recovery from the previous day's losses due to the positive influence of the U.S. stock market momentum and the won's strength.

Seokhwan Kim, a researcher at Mirae Asset Securities, said, "Despite a favorable foreign exchange environment, the domestic stock market fell the previous day due to semiconductor weakness, absence of foreign demand, and technical resistance," adding, "It is expected to recover today."

Jiwon Kim, a researcher at KB Securities, noted, "With the strong trend in semiconductor stocks including Nvidia, related domestic stocks are expected to show a rebound recovering the previous day's losses," and added, "Important events such as central bank governors' remarks and the Financial Monetary Committee are concentrated in the latter half of the week, so the flow is expected to be linked to individual stock momentum for the time being."