[Good Morning Market] U.S. Stocks Plunge Despite Shutdown Ending... KOSPI Expected to Open Lower

The New York Stock Exchange plunged despite the end of the shutdown (temporary suspension of operations). Investor sentiment weakened as expectations for an interest rate cut diminished. On the 14th, the KOSPI is also expected to open lower, reflecting the decline in the U.S. stock market.

UPI Yonhap News

On the 13th (local time) at the New York Stock Exchange, the blue-chip Dow Jones Industrial Average closed at 47,457.22, down 797.6 points (1.65%) from the previous trading day. The large-cap S&P 500 Index fell by 113.43 points (1.66%) to 6,737.49, while the tech-heavy Nasdaq Index plummeted by 536.102 points (2.29%) to 22,870.355.

President Donald Trump signed a temporary budget bill, ending the shutdown. This marks the end of the longest shutdown in history, lasting 43 days. However, the situation was negatively impacted as Federal Reserve officials expressed skepticism regarding the possibility of an additional interest rate cut in December.

Lim Jeongeun, a researcher at KB Securities, explained, "The positive effects of the shutdown ending were already priced in, and the focus shifted to the uncertainty surrounding a December rate cut, leading to a broad decline. The correction of the overheated tech sector continued, and investor confidence weakened as the White House suggested the possibility of October unemployment figures not being compiled, raising doubts about the reliability of upcoming economic indicators."

Lee Sunghoon, a researcher at Kiwoom Securities, said, "The consecutive hawkish remarks by Fed officials dampened expectations for a rate cut in December, which triggered the decline in the U.S. stock market."

The KOSPI is expected to open lower today, mainly due to the decline in technology stocks in the New York market. In New York, artificial intelligence (AI)-related stocks such as Nvidia (-3.56%), AMD (-4.21%), and Palantir (-6.53%) fell sharply.

Researcher Lee Sunghoon predicted, "Reflecting the decline in U.S. stocks, especially in technology and semiconductor sectors, amid fading hopes for a December rate cut, the KOSPI is expected to open lower. With continued upward pressure on the exchange rate and limited large-scale inflows of foreign capital, the domestic stock market is likely to see a lack of clear direction, with sector rotation continuing."