[Good Morning Stock Market] US Stock Market Mixed... KOSPI Expected to Start Lower

The domestic stock market is expected to start slightly lower on the 2nd. Concerns about the US economic slowdown are likely to have an impact. However, as expectations for improvement in the semiconductor industry grow, differentiated movements by sector are anticipated.

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On the 1st (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 35,630.68, up 71.15 points (0.20%) from the previous trading day. The S&P 500, focused on large-cap stocks, fell 12.23 points (0.27%) to 4,576.73, and the tech-heavy Nasdaq dropped 62.11 points (0.43%) to close at 14,283.91.

The S&P 500 and Nasdaq indices have risen for five consecutive months until last month, creating significant profit-taking pressure. August is typically a summer vacation season with reduced trading volume. However, expectations are high that the bullish trend will continue for the time being due to forecasts that the Federal Reserve's rate hikes are nearing an end, rapid inflation slowdown, and improvements in economic indicators.

Meanwhile, concerns about economic contraction due to weak manufacturing and employment indicators have increased, but strong corporate earnings expectations led to a mixed close. The US ISM manufacturing index for July recorded 46.4, remaining below 50 for nine consecutive months.

The domestic stock market is expected to start slightly lower today. The Morgan Stanley Capital International (MSCI) Korea Index ETF fell 0.01%, and the MSCI Emerging Markets Index ETF dropped 1.26%. Considering this, the KOSPI is expected to open down around 0.3%.

However, since investor sentiment in the US stock market is favorable, the Korean stock market is also expected to be positively influenced. Seosangyoung, a researcher at Mirae Asset Securities, said, "The US stock market's narrowing losses or turning positive due to inflows of buying interest will have a positive impact on the Korean stock market," adding, "It is positive that the Philadelphia Semiconductor Index, which once fell more than 1%, closed slightly down thanks to AMD's strength."

However, the market is expected to show differentiation by sector today. The domestic market closed higher centered on large-cap stocks the previous day, supported by the effect of supply-demand dispersion to other sectors such as semiconductors and biotech despite July export sluggishness and increased volatility in secondary battery stocks.

Han Jiyoung, a researcher at Kiwoom Securities, forecasted, "With upward factors such as AMD's strong performance and downward factors like uncertainty in secondary battery stocks' supply-demand and Fitch's downgrade of the US credit rating coexisting, a differentiated sectoral market is expected amid stagnant stock price movements." Researcher Seosangyoung also said, "Weak US manufacturing and employment indicators are a burden," but added, "The secondary battery and semiconductor sectors will show divergent movements, increasing volatility."

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