[Good Morning Stock Market] US Stock Market Closes Mixed, Domestic Market "Reflecting US Presidential Election Uncertainty"

While the US stock market closed mixed, the domestic stock market is reflecting uncertainties surrounding the US presidential election, with analyses suggesting a potential rebound thereafter.

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On the 22nd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 6.71 points (0.02%) from the previous trading day to close at 42,924.89. The S&P 500, which focuses on large-cap stocks, dropped 2.78 points (0.05%) to 5,851.20, while the tech-heavy Nasdaq rose 33.12 points (0.18%) to close at 18,573.13.

Last night, the US market opened lower amid uncertainty over the pace of interest rate cuts but steadily narrowed losses to close mixed. Among the 11 sectors comprising the S&P 500, five sectors including Consumer Staples, Energy, Real Estate, Technology, and Communication Services rose, while six sectors including Consumer Discretionary, Financials, Healthcare, Industrials, Materials, and Utilities declined.

Among individual stocks, automaker General Motors (GM) surged 9.85% after reporting earnings that exceeded market expectations. Global tobacco manufacturer Philip Morris also posted strong results and raised its annual outlook, soaring 10.47%.

Conversely, concerns over prolonged high interest rates led to declines in homebuilders’ stocks. DR Horton (-3.16%), Lennar (-3.91%), Toll Brothers (-3.53%), and PulteGroup (-7.24%) each fell.

The domestic stock market, showing a correction pattern amid uncertainties over the US presidential election, is expected to attempt a rebound around the election period. Junho Byun, a researcher at IBK Investment & Securities, said, "Since 2000, the KOSPI in the fourth quarter of years with US presidential elections has shown a relatively clear V-shaped pattern with lows around the election period." He added, "It is reasonable to view the impact of the US presidential election on the domestic stock market not as a sustained effect but as a short-term uncertainty factor." He further predicted, "The election uncertainty is likely to peak out shortly before and after the election. The market is expected to form a short-term bottom from the end of this month to early next month."

Ji-young Han, a researcher at Kiwoom Securities, noted, "The reason the domestic stock market has not escaped a weak phase recently is due to multiple factors including politics and earnings." She pointed out, "US political uncertainties such as tariff policies and worsening fiscal deficits in the event of a Trump win are negatively affecting stock prices." She continued, "It is important to pay attention to the possibility of a turnaround following upcoming earnings reports from major domestic companies in sectors like semiconductors and automobiles." She advised, "Even if macro and political noise such as US election uncertainties and concerns over rising interest rates spread today or during the remainder of this week, it is appropriate to avoid expanding short-selling positions."