[Good Morning Stock Market] New York Stocks Rise Together... "Korean Stock Market Expected to Start Up"

On the 16th, the domestic stock market is expected to start higher. This is because the U.S. New York stock market closed sharply higher on the 15th (local time) due to inflation slowdown indicators.

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In the New York stock market, the Dow Jones Industrial Average (Dow Index), centered on blue-chip stocks, closed at 43,221.55, up 703.27 points (1.65%) from the previous trading day. The S&P 500 Index, focused on large-cap stocks, rose 107 points (1.83%) to 5,949.91. The Nasdaq Index, centered on technology stocks, closed at 19,511.23, up 466.84 points (2.45%).

Market relief spread as the core Consumer Price Index (CPI) inflation rate slowed unexpectedly. According to the U.S. Department of Labor, the CPI in December last year rose 0.4% month-over-month and 2.9% year-over-year. These figures exceeded both market expectations and the 0.3% increase recorded in November last year.

However, the December core CPI, which excludes the volatile food and energy sectors, rose 0.2% month-over-month. This matched market expectations of 0.2% and was a slowdown compared to the previous month's 0.3%. The core CPI had consistently risen by 0.3% but slowed for the first time in five months. This stimulated expectations for a Federal Reserve (Fed) interest rate cut.

Ji-won Kim, a researcher at KB Securities, explained, "The U.S. stock market showed strength due to relief from the CPI and strong corporate earnings," adding, "All three major indices surged, with the Nasdaq rebounding after six trading days."

Sung-hoon Lee, a researcher at Kiwoom Securities, evaluated, "The U.S. stock market improved investor sentiment amid a sharp drop in U.S. Treasury yields as the core CPI slowed," and "Big tech stocks such as Tesla, Nvidia, and Apple surged, resulting in gains across the three major indices."

The domestic stock market is also expected to start higher. Researcher Lee said, "The domestic stock market is expected to open higher, reflecting the sharp drop in U.S. Treasury yields due to relief from the U.S. CPI and the surge in big tech companies," adding, "The recent sharp rise in the 10-year U.S. Treasury yield had constrained the upward momentum mainly in growth stocks including biotech, but the upward momentum is expected to become more prominent."

He also advised paying attention to the Bank of Korea's first Monetary Policy Committee meeting of the new year. Researcher Kim said, "Although the easing of domestic and international uncertainties such as the Israel-Hamas ceasefire is positive, volatility still needs to be prepared for around the time of Trump's inauguration," and explained, "The outlook is mixed due to the first Monetary Policy Committee meeting of the year, domestic and foreign policy variables, and the possibility of delayed Fed rate cut expectations, so the results should be closely watched."