[Good Morning Stock Market] US Stocks Close Mixed Ahead of CPI Release... KOSPI Expected to Remain Steady

Mixed Trends Ahead of February CPI Release
Focus on Whether US Rate Cut Expectations Will Recede

As the US stock market showed mixed trends ahead of the February Consumer Price Index (CPI) announcement, the KOSPI is expected to open flat on the 12th.

[Image source=Yonhap News]

On the 11th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed up 0.12% at 38,769.66. The S&P 500 fell 0.11% to 5117.94, and the Nasdaq dropped 0.41% to 16,019.27. The S&P 500, which had reached historic highs, declined for the second consecutive trading day. The three major indices, which closed lower on the 8th, mostly declined as weakness in technology stocks continued.

The market decline was mainly driven by reduced expectations for a US interest rate cut. The January CPI came in stronger than expected, pushing back expectations for the Federal Reserve's (Fed) first rate cut to June. Investors are concerned that if this CPI report is stronger than expected, expectations for the Fed's first rate cut could weaken further.

According to The Wall Street Journal (WSJ), economists expect the February CPI to rise 0.4% month-over-month, higher than January's 0.3% increase. Year-over-year, it is expected to rise 3.1%, the same as the previous month. The February core CPI is forecasted to increase 0.3% month-over-month, slowing from January's 0.4%, and to rise 3.7% year-over-year, down from 3.9% previously.

The semiconductor sector, led by Nvidia, showed weakness for the second consecutive day, dragging the market down. On the other hand, Apple, which had been weak, rose for two consecutive days, offsetting some of the losses. Bitcoin continued to hit new highs, surpassing $72,000.

The KOSPI, which struggled the previous day, is also expected to remain flat. The KOSPI closed down 0.8% the day before.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The KOSPI is expected to start flat today, followed by differentiated movements depending on individual stock issues."

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