[Good Morning Market] KOSPI Expected to Maintain Uptrend... New York Stock Market Closes Slightly Higher

U.S. Inflation Rises More Mildly Than Expected
All Three Major New York Stock Indices Close Slightly Higher
"Domestic Market Expected to Rebound, Led by Domestic Demand Stocks"

The New York stock market closed slightly higher. This was attributed to a milder-than-expected trend in producer prices following the consumer price data. Despite profit-taking pressures after the recent sharp rally in the domestic stock market, the upward trend is expected to continue.

On June 12 (local time), the Dow Jones Industrial Average at the New York Stock Exchange (NYSE) closed at 42,967.62, up 101.85 points (0.24%) from the previous session. The Standard & Poor's (S&P) 500 Index rose by 23.02 points (0.38%) to 6,045.26, while the tech-heavy Nasdaq Composite Index gained 46.61 points (0.24%) to finish at 19,662.48.

On the 11th (local time), the New York Stock Exchange (NYSE). Photo by Reuters Yonhap News

Following the release of the U.S. Consumer Price Index (CPI) for May the previous day, the Producer Price Index (PPI) also showed a milder trend than the market had expected, which led to increased buying. The May PPI, on a seasonally adjusted basis, rose 0.1% from the previous month, below the market forecast of 0.2%. The core PPI, which excludes food, energy, and trade services, also increased by 0.1%, falling short of the expected 0.3%.

The subdued inflation is believed to be due to companies stockpiling a significant amount of imports in advance before the tariff announcement on April 2, as well as the time lag required for tariffs to be reflected in the real economy.

Looking at major stocks, among the so-called "Magnificent 7 (M7)" tech giants, Microsoft, Nvidia, Apple, and Amazon all rose. Tesla fell by more than 2% due to the aftermath of its recent sharp rebound.

Oracle shares surged by an impressive 13.32% on the day, driven by first-quarter results that exceeded market expectations. Notably, during the previous day's earnings conference call, the company projected that its cloud infrastructure business would grow by more than 70% next year and that order volume would more than double, attracting a surge of investor interest.

Boeing, the American aircraft manufacturer, fell 4.79% following news that an Air India Dreamliner passenger jet crashed shortly after takeoff, resulting in the deaths of all passengers on board.

The domestic stock market is expected to continue its upward trend on June 13. The decline in the won-dollar exchange rate is anticipated to attract foreign capital inflows.

Lee Sunghoon, a researcher at Kiwoom Securities, stated, "The dollar index fell to the 97.8 level, marking its lowest point since 2022. The fact that the won-dollar exchange rate once again fell below the 1,360-won mark is expected to stimulate foreign capital inflows." He added, "In the early part of today's session, we expect a rebound centered on domestic demand stocks that could benefit from the lower won-dollar exchange rate."

Kim Jiwon, a researcher at KB Securities, explained, "Although the upward momentum of the domestic stock market is continuing, it is losing some steam. While investor sentiment remains positive, we expect sector-specific absorption of supply to take place."