[Good Morning Stock Market] US Stock Market Continues 'Nunchi Game'... Korean Stock Market Expected to Show Stock-Specific Trends

U.S. Major Indices Close Slightly Lower as FOMC Optimism Fades
Korean Market Expected to See Supply and Demand Competition Among Leading Sectors

Major U.S. stock indices closed slightly lower. The optimism fueled by the dovish stance of the Federal Open Market Committee (FOMC) the previous day faded in just one day due to tariff uncertainties. The domestic stock market is also expected to see intraday supply and demand competition among leading sectors amid a 'waiting game.'

On the 20th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 41,953.32, down 0.03% from the previous day. The S&P 500 index also ended trading at 5,662.89, down 0.22%. The tech-heavy Nasdaq index fell 0.33% to 17,691.63 compared to the previous day.

Last week, new unemployment claims met expectations, and February existing home sales exceeded forecasts, delivering some positive economic signals. However, the ongoing tariff uncertainties led to a continued 'waiting game.' The scheduled expiration of options linked to exchange-traded funds (ETFs) worth a total of $4.5 trillion also heightened investors' caution.

Energy, utilities, and financial sectors performed relatively well, while consumer staples and IT sectors underperformed the market. Large-cap tech stocks near the top of the market capitalization rankings showed mixed results around the flat line. Nvidia rose 0.86%, while Meta and Tesla closed slightly higher. Microsoft, Amazon, Apple, and Alphabet fell by about 1%. Broadcom showed a decline in the 2% range. Given that the proportion of U.S. household stock holdings rose to the 42% range in the first quarter of this year, some argue that the investment tendencies of households, which are more prone to psychological shifts than institutions, are increasing market volatility.

Going forward, attention is expected to shift from the U.S. Federal Reserve's monetary policy direction to the Trump administration's tariff policies. Recently, major central banks have commonly frozen policy rates due to concerns about uncertainties and the impact of tariffs imposed by the Trump administration. On the 2nd of next month, U.S. Treasury Secretary Scott Baesent is scheduled to announce reciprocal tariff rates by country. Although there is room for negotiation before or after the imposition of tariffs, uncertainty is expected to persist until the details are clarified.

The domestic stock market is also expected to experience a stock-specific market amid volatility. Han Ji-young, a researcher at Kiwoom Securities, explained, "There will be significant intraday supply and demand battles among three large sectors: semiconductors, defense, and bio. Both the U.S. and Korea are currently in periods heavily influenced by sentiment-related data, so it is even more important to focus on earnings."