[Good Morning Market] US CPI Meets Expectations... Nasdaq Surpasses 20,000 for the First Time Ever

Political Uncertainty Remains

Yonhap News

The Korean stock market is expected to start higher on the 12th. Buying momentum is anticipated due to the U.S. November Consumer Price Index (CPI) meeting expectations and the Nasdaq index surpassing the 20,000 mark for the first time ever.

On the previous day (local time) in the New York stock market, the Nasdaq index closed at 20,034.89, up 347.65 points (1.77%) from the previous trading day. This is the first time the Nasdaq index has crossed 20,000. The Standard & Poor's (S&P) 500 index rose 49.28 points (0.82%) to 6,084.19, while the Dow Jones Industrial Average (Dow) fell 99.27 points (0.22%) to close at 44,148.56.

The U.S. Department of Labor announced on the 11th that the November CPI rose 2.7% year-over-year and 0.3% month-over-month. This matches the expert estimate of 2.7% compiled by Dow Jones. The core CPI, which excludes volatile food and energy prices, increased 3.3% compared to a year ago.

Han Ji-young, a researcher at Kiwoom Securities, said, "The November CPI showed a pause in the slowdown for both headline and core figures but met expectations," adding, "It seems that a rate cut in December has become a foregone conclusion." She further explained, "Uncertainties remain regarding how much the dot plot for next year will be revised upward rather than whether there will be a rate cut in December."

The Korean stock market is also expected to continue its upward trend, supported by the strong Nasdaq and a decline in the exchange rate. Although political deadlock persists, the fact that both ruling and opposition parties are working on solutions suggests that the market has entered a manageable zone of uncertainty, which is positive.

Seo Sang-young, a researcher at Mirae Asset Securities, analyzed, "Information indicating that political uncertainty in the Korean stock market may gradually ease is continuously coming in," adding, "If political uncertainty eases, the market could recover to pre-martial law levels, but gains will be limited due to export slowdown and downward revisions of corporate earnings estimates."