[Good Morning Stock Market] US Stocks Close Mixed Amid J&J Vaccine Concerns... "Minimal Impact on Domestic Market"

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[Asia Economy Reporter Park Jihwan] The New York stock market showed mixed results as concerns over Johnson & Johnson (J&J)'s COVID-19 vaccine were offset by consumer price index data that was not as worrisome as expected. The Dow Jones Industrial Average closed slightly lower, but the S&P 500 reached an all-time high, supported by strong performance in technology stocks. The Nasdaq also rose more than 1%. Market experts predict that the news of the vaccine suspension will have little impact on the domestic stock market.

◆ Seosangyoung, Researcher at Mirae Asset Securities= The U.S. stock market saw technology stocks strengthen on hopes of easing inflation concerns after the consumer price index rose only 0.6% month-over-month. Meanwhile, financial stocks were weak, and the market opened mixed. Despite the news of Johnson & Johnson's vaccine suspension, the impact was limited, and investor sentiment remained stable, confined to changes in individual stocks. While value stocks such as financials, infrastructure-related stocks, some retail sectors, and industrials lagged due to falling interest rates, large-cap technology stocks and some medical device sectors, expected to continue improving earnings, showed strength.

The Korean stock market expanded its gains following the release of favorable Chinese export-import statistics during the trading session. In particular, foreign investors actively engaged in net buying, focusing on top market capitalization stocks such as semiconductors, secondary batteries, and automobiles, driving the index higher. The U.S. consumer price index showed a stable trend, and increased demand in U.S. Treasury auctions led to continued interest rate declines, which could stabilize foreign investor flows. Therefore, the Korean stock market is also expected to show strength centered on growth stocks. However, considering the weakness in some semiconductor stocks like Micron, the upside is expected to be limited.

◆ Kim Yumi, Economist at Kiwoom Securities= The U.S. stock market closed mixed following the FDA's recommendation to temporarily suspend Johnson & Johnson's COVID-19 vaccine. Uncertainty about economic normalization increased, causing the Dow (-0.2%) and Russell 2000 (-0.22%) to decline, but the S&P 500 and Nasdaq closed higher, supported by strong performances from technology stocks such as Apple (+2.43%) and Tesla (+8.60%). The U.S. consumer price index released before the market open was not as high as feared, leading to a decline in U.S. Treasury yields, which was a key factor in the strength of technology stocks.

The domestic stock market is expected to start higher, supported by the Nasdaq's rise and the upward trend in large technology stocks. However, with the U.S. earnings season about to begin in earnest, the process of digesting selling pressure from the previous day's gains may continue, gradually narrowing the extent of the rise. Although the overnight U.S. market saw selling pressure in cyclical stocks due to the FDA's temporary suspension recommendation for Johnson & Johnson's vaccine, the limited decline suggests that this is unlikely to escalate into a broader issue.

This content was produced with the assistance of AI translation services.