[Good Morning Stock Market] US Stock Market Closes Lower, Domestic Market "Cautious of Worsening Investor Sentiment"

As the U.S. stock market closed lower, the domestic stock market is expected to be cautious of worsening investor sentiment.

[Image source=Reuters Yonhap News]

On the 23rd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 409.94 points (0.96%) from the previous trading day to close at 42,514.95. The S&P 500, which focuses on large-cap stocks, dropped 53.78 points (0.92%) to 5,797.42, and the tech-heavy Nasdaq index closed down 296.48 points (1.60%) at 18,276.65.

Last night, the U.S. stock market closed lower amid a sharp rise in Treasury yields and concerns over prolonged high interest rates. For the first time since early last month, the Dow and S&P 500 indices fell for three consecutive trading days, while the Nasdaq ended its five-day winning streak and declined.

By sector, among the 11 sectors comprising the S&P 500, only real estate and utilities rose, while nine sectors including consumer staples, consumer discretionary, energy, financials, healthcare, industrials, materials, technology, and communication services declined.

Among individual stocks, McDonald's, the world's largest fast-food chain, plunged 5.16% after reports of E. coli infections linked to some menu items. Coca-Cola, the world's number one comprehensive beverage company, fell 2.07% despite posting results that exceeded market expectations.

Electric vehicle maker Tesla fell nearly 2% during regular trading but surged more than 8% in after-hours trading following the release of its earnings report. Tesla reported third-quarter revenue of $25.182 billion and earnings per share (EPS) of $0.72. Compared to Wall Street’s average estimates, revenue fell short, but EPS exceeded expectations.

The domestic stock market is expected to be cautious of worsening investor sentiment due to the weakness in the U.S. stock market. Ji-won Kim, a researcher at KB Securities, said, "Concerns over prolonged high interest rates may continue to weaken risk appetite for the time being."

Meanwhile, with major companies such as SK Hynix set to announce earnings, attention should be paid to the accuracy of earnings estimates. Kyu-jin Kim, a researcher at NH Investment & Securities, analyzed, "By improving the accuracy of earnings expectations, it is possible to identify which sectors have been over- or underestimated. Looking at this year’s EPS, healthcare, financials, and IT sectors are expected to see the largest EPS increases. Conversely, industrials and energy stocks are likely somewhat overestimated."