[Good Morning Market] U.S. Shutdown Nears End... "Sector Rotation Expected in Korea"

Dow Jones Hits All-Time High
Korean Stock Market Shows Limited Downside
Market Opening Delayed by One Hour Due to CSAT

The New York stock market closed mixed as expectations for the lifting of the federal government shutdown and concerns over overvaluation of artificial intelligence (AI) technology stocks intersected. On November 13, the Korean stock market is expected to see sector rotation between traditional leading stocks such as semiconductors and shipbuilding, and previously neglected sectors such as bio and secondary batteries.

On November 12 (local time) at the New York Stock Exchange, the blue-chip-focused Dow Jones Industrial Average rose by 326.86 points (0.68%) to close at 48,254.82, marking an all-time high. The S&P 500, which tracks large-cap stocks, gained 4.31 points (0.06%) to finish at 6,850.92, while the tech-heavy Nasdaq fell by 61.844 points (0.26%) to close at 23,406.457.

A trader is working at the New York Stock Exchange in the United States. Photo by UPI Yonhap News

Investors' attention was focused on whether the federal government shutdown would end. The Senate passed a temporary budget bill for the 2026 fiscal year on November 10, paving the way for the shutdown to be lifted, with only the House vote and President Donald Trump's signature remaining. This has increased the likelihood of ending the shutdown, which has lasted for a record 43 days in U.S. history.

By sector, financial stocks were strong. Goldman Sachs rose by 3.54%, JPMorgan by 1.52%, and American Express by 0.71%. U.S. heavy equipment manufacturer Caterpillar also climbed 0.9%. Technology stocks continued to face valuation pressures for the second consecutive day, resulting in mixed performances among individual stocks. AMD jumped 9%, Nvidia rose 0.33%, and Broadcom gained 0.93%. In contrast, Palantir and Oracle fell by 3.56% and 3.88%, respectively.

On this day, Lee Sunghoon, a researcher at Kiwoom Securities, said, "The market is likely to maintain its upward trend due to expectations for the end of the U.S. shutdown and the rise in semiconductor stocks." However, he added, "Frequent sector rotation between traditional leading stocks (such as semiconductors, shipbuilding, and defense) and previously neglected sectors (such as bio and secondary batteries) is expected to continue."

He explained, "Recently, the KOSPI has been taking a breather after a sharp rally in September and October, amid concerns of overheating. Even so, it has still recorded a 1.0% return this month, indicating that downward movement remains limited. As the end of the year approaches, the momentum from the new government's stock market revitalization policies is being highlighted once again."

He continued, "Following the recent reduction in the highest tax rate for separate taxation on dividend income, the ruling party has indicated it will propose the third amendment to the Commercial Act, including mandatory treasury stock cancellation, by next week at the latest. The government's consistent policy stance to support the stock market, such as providing tax benefits for long-term domestic investors, is also expected to serve as a continued driving force."

Meanwhile, as the 2026 College Scholastic Ability Test (CSAT) is being held on this day, trading on the domestic stock market will begin one hour later than usual, starting at 10:00 a.m. The regular session closing time will also be delayed to 4:30 p.m.