[Good Morning Market] Domestic Stocks Expected to Open Lower on US Risks... Focus on Value-Up Related Stocks

It is expected that the domestic stock market will open lower on April 22, influenced by a sharp decline in the US stock market due to tariff uncertainties and concerns over the independence of the Federal Reserve (Fed). However, the market is likely to pare some of its losses during the session, supported by bargain hunting and earnings announcements.

On April 21 (local time), all three major US stock indices closed lower. The Dow Jones Industrial Average, which focuses on blue-chip stocks, fell by 971.82 points (2.48%) to close at 38,170.41. The S&P 500, which tracks large-cap stocks, dropped by 124.5 points (2.36%) to 5,158.2. The tech-heavy Nasdaq declined by 415.55 points (2.55%) to finish at 15,870.9.

Donald Trump, President of the United States, launched a fierce attack on Jerome Powell, Chair of the Federal Reserve, dragging down the US stock market. On his social networking service, Truth Social, President Trump criticized Chair Powell, calling him "Mr. Too Late" and a "major loser," and warned that the economy could slow down if interest rates are not cut immediately. This came just four days after he pressured for a rate cut and mentioned the possibility of dismissing Chair Powell on April 17.

As a result, concerns spread in the US stock market that the independence of the Fed could be undermined, leading to a surge in selling. The repeated pressure from President Trump to cut rates has fueled worries that the Fed may not be able to implement appropriate monetary policy.

The decline in technology stocks was particularly pronounced, especially among the "Magnificent 7 (M7)." Tesla dropped by 5.75%, Nvidia by 4.51%, and Meta, the parent company of Facebook, by 3.35%, all falling by more than 3%. Alphabet, the parent company of Google, and Microsoft (MS) also declined by 2.28% and 2.35%, respectively.

The MSCI Korea ETF, which is closely linked to the domestic stock market, rose by 0.15%, while the MSCI Emerging Markets ETF fell by 0.02%. The Philadelphia Semiconductor Index declined by 2.10%.

The domestic stock market is expected to open lower due to negative factors from the US but gradually reduce its losses. Lee Sunghoon, a researcher at Kiwoom Securities, predicted, "The market is likely to show a trend of narrowing losses during the session, driven by the appeal of bargain prices and individual earnings issues." He also pointed out, "Given that the Democratic Party mentioned improvements in corporate governance, amendments to the Commercial Act, and a fair stock market order the previous day, it is important to pay attention to related sectors." Kim Jiwon, a researcher at KB Securities, also explained, "Tariff risks are considered to have peaked, and we expect to see sectoral differentiation in the market based on domestic and global earnings."