[Good Morning Stock Market] US Stocks Close Lower, Domestic Market "Expected to Attempt Rebound"

While the US stock market closed lower, the domestic stock market is expected to attempt a rebound.

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On the 12th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 43,910.98, down 382.15 points (0.86%) from the previous trading day. The S&P 500, which focuses on large-cap stocks, fell 17.36 points (0.29%) to 5,983.99, and the tech-heavy Nasdaq dropped 17.36 points (0.09%) to 19,281.40.

Last night, the US stock market closed lower amid concerns that the 'Trump rally' had reached a short-term overheating point, prompting profit-taking sales. It was the first time since the 4th that all three major indices closed down together. The Russell 2000, composed mainly of small- and mid-cap stocks, also fell 1.77%.

By sector, all sectors except consumer staples, technology, and communication services declined. Consumer discretionary, healthcare, materials, real estate, and utilities all dropped more than 1%. Notably, the Philadelphia Semiconductor Index fell 0.93% from the previous session, continuing its decline for the third consecutive day.

Among individual stocks, electric vehicle maker Tesla fell more than 6% amid a flood of profit-taking sales. Nvidia rose 2.09%, maintaining its position as the largest market cap, while Microsoft and Amazon each gained about 1%. Alphabet and Meta Platforms closed slightly higher.

The domestic stock market plunged the previous day due to simultaneous domestic and international negative factors, including the won-dollar exchange rate breaking through the 1,400 won level and capital outflows to the virtual asset market. In response, Han Ji-young, a researcher at Kiwoom Securities, stated, "Recently, the KOSPI has fallen below the 2,500 level for the first time since Black Monday on August 5, as foreign and institutional investors have been selling off. Unlike previous sharp declines, the domestic market has shown a lone weakness compared to other countries’ markets that experienced several rallies after the US presidential election, which has undermined domestic investors' confidence."

However, the researcher explained that negative factors such as uncertainty over Trump’s policies, which burden the domestic market, have already been reflected since last month, and now the market has entered a phase with increased valuation appeal. He analyzed, "As of the previous day, the KOSPI’s 12-month trailing price-to-book ratio (PBR) was 0.87, and the only other time this year the trailing PBR was 0.87 was on August 5. This level is strongly recognized as a bottom zone." He added, "Since there is no major crisis or systemic risk currently, assuming the current index level is a range where price recovery is possible, it is necessary to respond focusing on stocks that have been excessively sold off."