[Good Morning Stock Market] "New York Stock Market Rebounds on Bargain Buying... Korean Market Expected to Remain Flat After Previous Day's Sharp Rise"

The U.S. stock market closed higher as buying interest emerged amid ongoing declines due to recession concerns. On the 18th, the Korean stock market is expected to show a sideways trend as some profit-taking follows the sharp rise the previous day.

AFP Yonhap News

On the 17th (local time) in the New York stock market, the blue-chip-focused Dow Jones Industrial Average (Dow) closed at 41,841.63, up 353.45 points (0.85%) from the previous trading day. The large-cap S&P 500 index rose 36.19 points (0.65%) to 5,675.12, and the tech-heavy Nasdaq index gained 54.58 points (0.31%) to close at 17,808.67.

The New York stock market had been undergoing continuous corrections recently. Concerns over a recession caused by President Donald Trump's tariff policies had an impact. Both the Dow and Nasdaq indices have fallen more than 10% from their peak levels. On this day, buying interest at lower prices entered the market, helping the market rebound from last week's correction.

According to the U.S. Department of Commerce, retail sales in February this year totaled $722.7 billion, up 0.2% from the previous month. The market had initially expected retail sales to increase by 0.6% last month, so the figure fell significantly short of expectations. However, retail sales excluding automobiles rose 0.3% month-on-month, meeting forecasts and providing relief to the market.

Ji-won Kim, a researcher at KB Securities, explained, "The New York stock market saw the three major indices rise together for two consecutive days due to easing recession concerns following improved consumer indicators and the inflow of bargain buying. All sectors except discretionary consumer goods rose, with retailers like Walmart showing strength, and the semiconductor index also increased."

The securities industry also expects the KOSPI to rise. Researcher Kim said, "The domestic market was strong the previous day as foreign and institutional investors entered, with the electric and electronics sectors leading the market, and the KOSPI recovered the 2,600 level. Although uncertainties remain due to the release of the Bank of Korea's Monetary Policy Committee minutes and upcoming major countries' monetary policy meetings starting tomorrow, the rebound trend is expected to remain valid."

On the other hand, there are also forecasts that the market will move sideways. Ji-young Han, a researcher at Kiwoom Securities, said, "There are mixed upward and downward factors such as easing concerns about U.S. consumer economic instability and caution over Trump's tariffs. Due to some profit-taking following sharp intraday rises centered on semiconductors and biotech the previous day, a box-range movement is expected."