[Good Morning Stock Market] KOSPI Expected to Start Higher Amid Continued US Tailwinds

Tech Stocks Rally Including Nvidia
Oil Price Drop Seen as Positive
Calls for Slowing US Interest Rate Cuts

Following a strong close in the New York stock market overnight, the domestic market is also expected to start higher on the 15th.

The major indices of the U.S. New York stock market all closed higher on the 14th (local time), boosted by a rally in technology stocks including Nvidia. The blue-chip-focused Dow Jones Industrial Average surpassed the 43,000 mark for the first time, reaching an all-time high. The S&P 500 index also hit a record high.

At the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial Average closed at 43,065.22, up 201.36 points (0.47%) from the previous session. The large-cap S&P 500 index rose 44.82 points (0.77%) to 5,859.85, and the tech-heavy Nasdaq index gained 159.75 points (0.87%) to close at 18,502.69.

Among individual stocks, the technology rally was prominent. Nvidia, the leader in artificial intelligence (AI) stocks, rose more than 2% to reach an all-time high, driving the tech rally.

International oil prices fell due to OPEC's downward revision of demand forecasts and disappointment over China's economic stimulus measures. At the New York Mercantile Exchange, the near-month November delivery West Texas Intermediate (WTI) crude oil closed at $73.83 per barrel, down $1.73 (2.29%) from the previous trading day.

However, there are calls in the market to slow the pace of interest rate cuts. Christopher Waller, a member of the U.S. Federal Reserve Board, mentioned that the pace of monetary easing should be slowed following the recent big cut (50 basis points). He noted that despite the recent employment report significantly exceeding expectations, confirming the strength of the labor market, the recently released inflation data was disappointing.

The domestic stock market is also expected to benefit from the positive momentum originating in the U.S. Earlier, the domestic market recovered the 2,600 level thanks to a 'twin' buying spree by foreigners and institutions after four trading days. The KOSPI closed at 2,623.29, up 1.02% from the previous day. The KOSDAQ index fell 0.09% to 770.26, marking a decline for four consecutive trading days.

Han Ji-young, a researcher at Kiwoom Securities, diagnosed, "Despite Fed Board member Waller's cautious remarks on interest rate cuts today, the sharp drop in oil prices due to OPEC's downward demand adjustment, and the strength of the Philadelphia Semiconductor Index, including Nvidia which hit a new high amid Blackwell demand expectations, are expected to lead to a higher start."