[Good Morning Stock Market] US Market Pauses... "Domestic Market Expected to Start Slightly Firm"

On the 16th (local time), the US stock market in New York collectively declined. This was a breathing period following the sharp rise the previous day. On the 17th, the domestic stock market is expected to start higher despite the decline in the US market, due to stabilization in the exchange rate.

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In the New York stock market, the Dow Jones Industrial Average (Dow) focused on blue-chip stocks closed at 43,153.13, down 68.42 points (0.16%) from the previous trading day. The S&P 500, centered on large-cap stocks, closed at 5,937.34, down 12.57 points (0.21%). The Nasdaq, focused on technology stocks, recorded 19,338.29, down 172.94 points (0.89%).

US retail sales for December fell short of expectations. However, key segments showed solid performance. According to the US Department of Commerce, December retail sales in the US amounted to $729.2 billion, increasing 0.4% month-over-month, below the market forecast of 0.5%. However, since the November retail sales growth rate was revised upward from the initially reported 0.7% to 0.8%, December retail sales are considered not to have deviated significantly from expectations.

Ji-won Kim, a researcher at KB Securities, commented, "After fluctuations due to strong TSMC earnings and retail sales results, the three major indices closed lower," adding, "The decline widened toward the end of the session, mainly in technology stocks."

The domestic stock market is expected to start slightly higher despite the decline in the US market. Seong-hoon Lee, a researcher at Kiwoom Securities, said, "Despite corrections in big tech stocks including the 'Magnificent 7' (M7), the calming trend in market interest rates offsets this impact, leading to a slightly positive start," and advised, "With the Bank of Korea’s unexpected rate freeze and the easing of the dollar, the won-dollar exchange rate fell to the high 1450 won range. It is necessary to pay attention to whether foreign demand for the domestic stock market will continue following the previous day."

He particularly recommended looking into China-related beneficiary stocks. Lee said, "With ongoing reports on Chinese economic stimulus measures, including President Xi Jinping’s mention of economic stimulus in his New Year’s address, this expectation is likely to continue until the March Two Sessions (National People's Congress and Chinese People's Political Consultative Conference)," emphasizing, "If economic indicators such as retail sales and industrial production, to be announced during the trading day, show better-than-expected performance, expectations for China’s economic recovery will strengthen, potentially creating a favorable environment for domestic China-related beneficiary stocks."