[Good Morning Market] US Stocks Rise on Eased Tariff Uncertainty... "KOSPI Expected to Fluctuate Around 3200"

The New York Stock Exchange closed higher on hopes for progress in tariff negotiations. On July 15, the Korean stock market is expected to see continued buying and selling battles around the KOSPI 3200 level, as investors closely monitor policy momentum and key economic indicator releases.

On July 14 (local time), the Dow Jones Industrial Average closed at 44,459.65, up 88.14 points (0.20%) from the previous session. The S&P 500 rose 8.81 points (0.14%) to 6,268.56, and the Nasdaq gained 54.80 points (0.27%) to finish at 20,640.33. The Russell 2000 index, which focuses on small and mid-cap stocks, also showed strength, rising 0.7%.

The market focused on the possibility of negotiations following President Donald Trump's tariff letters sent to 25 countries, assessing that the likelihood of high tariffs being fully imposed is low. At the White House, President Trump stated, "The agreement has been reached and there is nothing more to negotiate," but added, "We are always open to dialogue." Previously, President Trump sent letters notifying countries of high tariffs, but by postponing the effective date to August 1, he effectively granted an additional negotiation period. As a result, investors interpreted the announcement of high tariffs as more of a negotiation tactic than an actual policy, prompting bargain buying. The market, which started the session weak, managed to rebound.

Attention is also focused on key economic indicators scheduled for release this week, including the June Consumer Price Index (CPI), Producer Price Index (PPI), and retail sales. According to market forecasts, the core CPI for June is expected to rise 2.9% year-on-year. The June PPI is also projected to increase by 0.3% from the previous month, indicating ongoing inflationary pressures. June retail sales are anticipated to rise by 0.2% month-on-month, suggesting a recovery in consumption. In addition, the second-quarter earnings season will begin in earnest, starting with major financial institutions such as JPMorgan Chase and Morgan Stanley. Market research firm FactSet projects that second-quarter net profits for S&P 500 companies will increase by 4.6% compared to the same period last year.

On this day, the Korean stock market is expected to experience continued volatility in supply and demand amid caution over US economic indicators and the government's stock market support stance. In particular, after the KOSPI recovered the 3200 level for the first time in three years and ten months the previous day, it is expected to fluctuate near its yearly high. Lee Sunghoon, a researcher at Kiwoom Securities, analyzed, "With the government's policy stance clearly focused on supporting the stock market, governance and shareholder return policy stocks are expected to remain key themes in the market until the end of this month."