"Powell's Spicy Move" Breaks KOSPI 2400 Level... KOSDAQ Also Declines

Below 2400 During Trading... Four Trading Days After Short Selling Ban

The KOSPI index fell on the morning of the 10th following hawkish remarks by Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), who left the possibility of additional tightening open.

On the 10th, the KOSPI index opened at 2406.40, down 20.68 points (0.85%) from the previous trading day, as dealers were working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. After the opening, the KOSPI index continued its downward trend and fell below the 2400 level during the session. Photo by Jinhyung Kang aymsdream@

As of 9:30 a.m. that day, the KOSPI index was trading at 2,398.31, down 28.27 points (-1.16%) from the previous trading day. The index opened at 2,406.40, down 20.68 points (0.85%), and fell below the 2,400 level. This was the first time in four trading days since the full ban on short selling on the 6th that the 2,400 level was breached during the session. Individual investors net bought 91.4 billion KRW, but foreigners and institutions sold approximately 18.1 billion KRW and 73.6 billion KRW, respectively.

Among the top market capitalization stocks, POSCO Future M (-4.63%), Samsung SDI (-3.64%), LG Energy Solution (-3.50%), LG Chem (-3.21%), and POSCO Holdings (-2.28%) declined in that order. Meanwhile, Shinhan Financial Group (0.86%), SK Hynix (0.23%), and KB Financial Group (0.19%) showed gains.

By sector, most industries were down, including Steel & Metals (-2.29%), Chemicals (-1.80%), Machinery (-1.78%), Distribution (-1.53%), and Transportation & Warehousing (-1.39%). However, Non-metallic Minerals (0.18%), Pharmaceuticals (0.11%), and Telecommunications (0.03%) were up.

On the 9th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 33,891.94, down 220.33 points (0.65%) from the previous session. The large-cap focused S&P 500 index fell 35.43 points (0.81%) to 4,347.35, and the tech-heavy Nasdaq index dropped 128.97 points (0.94%) to 13,521.45. Chairman Powell stated, "The Federal Open Market Committee (FOMC) is committed to achieving a sufficiently restrictive monetary policy stance to bring inflation down to 2%," but added, "We cannot be certain that we have achieved that policy stance." He emphasized, "If we judge that it is appropriate to adopt a more restrictive monetary policy, we will not hesitate to do so."

At the same time, the KOSDAQ index recorded 788.99, down 13.88 points (-1.73%) from the previous session. Foreigners bought 7.9 billion KRW worth of shares, while individuals and institutions sold 45 billion KRW and 28.7 billion KRW, respectively.

Among the top market capitalization stocks, Pearl Abyss (-5.99%), EcoPro BM (-5.03%), Rainbow Robotics (-4.70%), EcoPro (-4.66%), Kakao Games (-3.35%), and L&F (-2.67%) declined in that order. Classys (1.07%) was up.

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