[Good Morning Stock Market] Stable June US FOMC... KOSPI Eyes the 3,000 Mark

On June 19, the KOSPI is expected to open higher, driven by the results of the June Federal Open Market Committee (FOMC) meeting in the United States, which were in line with market expectations, as well as continued optimism surrounding new government policies.

In the previous session on the New York Stock Exchange, the Dow Jones Industrial Average closed at 42,171.66, down 44.14 points (-0.1%) from the previous day. The S&P 500 Index ended at 5,980.87, down 1.85 points (-0.03%), while the tech-heavy Nasdaq Composite Index finished at 19,546.27, up 25.18 points (0.13%) from the previous session.

The Federal Reserve held the FOMC meeting on this day and decided to keep the benchmark interest rate unchanged at the current level of 4.25-4.50%. Jerome Powell, Chair of the Federal Reserve, stated that the Fed would maintain a cautious stance, including any future rate cuts, based on incoming data.

Since the Fed's decision to hold rates steady was largely anticipated, the market impact was also limited, as both the rate projections from Fed officials and Chair Powell's comments maintained their previous outlooks.

However, instability in the Middle East, including the war between Israel and Iran, is also affecting the New York stock market. The previous day, U.S. President Donald Trump heightened uncertainty with strong remarks, urging Iran to "surrender unconditionally," although U.S. military involvement has not yet been officially confirmed.

Additionally, President Trump stated in an interview that talks with Iran remain possible and that there is still a chance for an agreement. Taking this into account, even if the geopolitical issues between Israel and Iran are not resolved in the short term, market sensitivity to the issue is expected to gradually decrease as the week progresses.

On the previous day, the domestic stock market closed higher, with both major indices rising, despite ongoing instability in the Middle East between Israel and Iran and concerns about potential U.S. military intervention. The gains were led by large-cap stocks amid increases in customer deposits and trading volume. In particular, internet-related stocks surged sharply, fueled by expectations of benefits from the government's artificial intelligence (AI) investment plans.

Lee Sunghoon, a researcher at Kiwoom Securities, commented, "Today, the domestic stock market is likely to experience continued upward pressure, as the results of the June FOMC meeting were largely in line with expectations and optimism regarding new government policies persists, despite ongoing geopolitical tensions between Israel and Iran."

He added, "Notably, as of yesterday's closing, the KOSPI stood at 2,972, leaving about 1% to reach the 3,000 mark. Today, the key point to watch will be whether the KOSPI can surpass the psychologically significant 3,000 level, supported by market liquidity, despite profit-taking pressures that may arise at this threshold."