[Good Morning Stock Market] "US Stocks Fall on Unexpected Indicators... Focus on Whether Korea Will Cut Interest Rates"

The U.S. New York stock market closed slightly lower. It failed to find direction due to economic indicators that deviated from expectations. On the 11th, the domestic stock market is expected to be influenced by whether the Bank of Korea's Monetary Policy Committee will cut interest rates.

[Image source=Reuters Yonhap News]

On the 10th (local time), in the New York stock market, the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 42,454.12, down 57.88 points (0.14%) from the previous trading day. The S&P 500 index, focused on large-cap stocks, fell 11.99 points (0.21%) to 5,780.05, and the Nasdaq index, centered on technology stocks, also declined 9.57 points (0.05%) to close at 18,282.05.

The U.S. inflation rate announced that day exceeded expectations, increasing uncertainty surrounding the interest rate path. According to the U.S. Department of Labor, the Consumer Price Index (CPI) for September rose 2.4% compared to the same period last year, higher than market experts' forecast of 2.3%. The core CPI increased 3.3% year-over-year, also surpassing the market estimate of 3.2%. Additionally, employment was confirmed to be gradually slowing. According to the U.S. Department of Labor, new unemployment claims for the week of September 29 to October 5 rose by 33,000 from the previous week to 258,000, marking the highest level since August of last year.

Lee Seong-hoon, a researcher at Kiwoom Securities, said, "The U.S. stock market started lower as it digested macro indicators such as the CPI and new unemployment claims early in the session, but later partially recovered losses centered on major stocks like Nvidia, closing slightly lower."

Choi Kwang-hyuk, a researcher at LS Securities, analyzed, "There is still no clear evidence of the end of the manufacturing inventory adjustment cycle and overall manufacturing recovery. It is judged that the economic slowdown trend is likely to appear."

The domestic stock market is expected to be influenced by whether the Bank of Korea's Monetary Policy Committee will cut interest rates. The Monetary Policy Committee will hold a monetary policy direction meeting at 9 a.m. on the 11th to decide whether to adjust the current base rate of 3.50%. Lee said, "At the time when the G2's rate cuts were announced preemptively, attention should be paid to whether the Bank of Korea will also join the global interest rate cut cycle."

He added, "As the domestic stock market digests the Tesla Robotaxi event scheduled in the morning, volatility in stock prices is expected to expand, centered on the secondary battery sector." He emphasized, "Amid sluggish trading volume and a box range market, with the arrival of the third-quarter earnings season, a stock market with sector-by-sector rotation flows occurring from time to time is expected to continue."