[Good Morning Market] New York Stocks Pause for Breath... Korean Market Also Expected to Take a Wait-and-See Approach

As the New York stock market paused for breath after a sharp rally, the Korean stock market is also expected to take a wait-and-see approach on May 15, following its recent consecutive gains.

Reuters Yonhap News

On May 14 (local time) in the New York stock market, the Dow Jones Industrial Average, which is centered on blue-chip stocks, closed at 42,051.06, down 89.37 points (0.21%) from the previous trading day. The S&P 500, which is focused on large-cap stocks, rose by 6.03 points (0.1%) to 5,892.58, while the Nasdaq, which is centered on technology stocks, climbed 136.72 points (0.72%) to 19,146.81.

The New York stock market showed mixed results due to the absence of events such as major economic indicator announcements. However, the Dow Jones declined as pharmaceutical stocks continued to fall following President Donald Trump's statement regarding an executive order to lower drug prices.

On the other hand, President Trump's Middle East tour acted as a positive factor, leading to strength in technology stocks such as Nvidia, Tesla, and AMD. Lee Sunghoon, a researcher at Kiwoom Securities, explained, "As tariff risks have eased, risk appetite has continued, resulting in a short-term shift of funds from bonds to stocks even within the U.S. market."

The domestic stock market is also expected to experience a pause after its recent consecutive gains. Except for May 9, the KOSPI has risen every day this month. Researcher Lee predicted, "With the recent rebound, the KOSPI has entered overbought territory, so the index is likely to show a short-term pause."

However, the securities industry advises that investors should pay attention to related stocks, as net buying by foreigners continues and there are presidential election issues. Kim Ji-won, a researcher at KB Securities, said, "Foreign buying has continued in the Korean stock market since May, which is positive," and added, "It is important to pay attention to industry-specific issues according to the pledges of each presidential candidate."

Researcher Lee also explained, "The continued meaningful inflow of foreign funds into the domestic stock market since May can increase upward pressure on the market," and added, "Foreign investors have made net purchases of about 1 trillion won in the KOSPI during May, and after news of a 90-day tariff suspension between the U.S. and China, there has been an increase in non-arbitrage basket trading, which is also a positive sign."