[Good Morning Market] Israel-Iran Ceasefire and Plunging Oil Prices Expected to Boost Domestic Stock Market Opening

On June 23 (local time), the New York stock market closed higher amid expectations of easing tensions in the Middle East. The domestic stock market is also expected to open higher as it is influenced by this trend, and attention is focused on whether foreign investors, who have driven the KOSPI rally, will begin to realize their profits and sell off shares.

At the New York Stock Exchange, the Dow Jones Industrial Average closed at 42,581.78, up 374.96 points (0.89%) from the previous trading day. The S&P 500 Index rose 57.33 points (0.96%) to 6,025.17, while the Nasdaq Composite Index ended at 19,630.98, up 183.57 points (0.94%).

New York Stock Exchange. Photo by Reuters Yonhap News

Contrary to early concerns, the New York stock market opened higher, but turned downward in the afternoon after reports emerged that Iran had fired missiles at U.S. military bases stationed in Qatar and Iraq. However, the market quickly rebounded after it was reported that Iran had given advance notice of the attack and concluded its retaliation without causing significant damage.

President Donald Trump also posted on the social media platform Truth Social, saying, "It was a very weak response, as expected," and added, "I thank Iran for providing advance notice of the attack, which resulted in no casualties."

Looking at individual stocks, Tesla closed at $348.68, up 8.23%. This surge is attributed to strong buying following the start of RoboTaxi test operations. Shares of Circle, a stablecoin-related stock, soared 9.64%. Since its listing on the 5th, its price has risen more than sevenfold.

Microsoft rose 1.8%, while Meta gained 2.37%. Nvidia and Apple were up 0.22% and 0.25%, respectively. In contrast, Amazon and Alphabet fell by 0.58% and 1.03%, respectively.

International oil prices plummeted on hopes for easing tensions in the Middle East. On the London ICE Futures Exchange, the front-month Brent crude futures settled at $71.48 per barrel, down $5.53 (7.2%) from the previous session. On the New York Mercantile Exchange, the front-month West Texas Intermediate (WTI) futures closed at $68.51 per barrel, down $5.33 (7.2%) from the previous session.

On June 24, the domestic stock market is expected to open higher, supported by the sharp drop in international oil prices following news of a ceasefire between Israel and Iran, as well as the strength of the U.S. stock market led by Tesla.

At 7 a.m. that day, President Trump posted on social media, "Israel and Iran have agreed to a complete and comprehensive ceasefire," and added, "During the ceasefire, both sides will maintain a peaceful and respectful attitude."

Han Ji-young, a researcher at Kiwoom Securities, said, "From a supply and demand perspective, the key point to watch will be whether foreign investors, who have driven the KOSPI rally by net buying nearly 5 trillion won since June, will start realizing profits and selling shares." She added, "From an industry perspective, market attention is expected to focus on whether there will be a sector rotation from shipping and energy stocks, which benefited from the Israel-Iran situation, to sectors that suffered, such as airlines and domestic consumption."