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

The U.S. stock market showed a correction centered on the Nasdaq, and the KOSPI is expected to start lower on the 3rd.

[Image source=UPI Yonhap News]

On the first trading day of the year, the 2nd (local time), the Dow Jones Industrial Average closed at 37,715.04, up 0.07% (25.50 points) from the previous session at the New York Stock Exchange (NYSE). On the other hand, the S&P 500 index, which focuses on large-cap stocks, fell 0.57% (27.00 points) to 4,742.83, and the tech-heavy Nasdaq index closed down 1.63% (245.41 points) at 14,765.94.

Seojung-hoon, a researcher at Samsung Securities, explained, "The New York stock market declined due to the retreat of expectations for interest rate cuts. The probability of a Federal Reserve (Fed) rate cut in March, which was once considered 100%, dropped to 89% on that day," adding, "In a situation where short-term overheating was being debated, large-cap tech stocks at the top of the market capitalization also showed a simultaneous weakness."

In the S&P 500 index, technology, telecommunications, and industrial stocks showed notable declines. In contrast, energy, health care, utilities, and consumer staples rose more than 1%. Apple, the world's largest market cap company, fell 3.58% after Barclays downgraded its investment rating, forecasting weak iPhone sales this year. The 'Magnificent 7' big tech companies, including Microsoft (-1.37%), Google Alphabet (-1.09%), and Amazon (-1.32%), all showed weakness. Tesla closed slightly down after its Q4 deliveries (484,507 units) exceeded market expectations. The Philadelphia Semiconductor Index plunged nearly 4% due to factors such as the Netherlands' export restrictions on Chinese semiconductors.

The Morgan Stanley Capital International (MSCI) Korea Index ETF and MSCI Emerging Markets ETF fell 1.21% and 1.17%, respectively. Eurex KOSPI 200 futures dropped 1.00%.

Han Ji-young and Kim Ji-hyun, researchers at Kiwoom Securities, said, "Last year, the Nasdaq recorded a relatively high surge, causing a technical and psychological counterbalance effect," adding, "The Korean stock market is expected to start lower due to the U.S. market correction and the sharp rise in the won-dollar exchange rate, among other negative external factors."

Meanwhile, the 1-month non-deliverable forward (NDF) won-dollar exchange rate in New York was 1,308.49 won, reflecting an expected 8 won rise at the start of trading.

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