[Good Morning Stock Market] US Stocks S&P 500 and Nasdaq Hit New Highs, KOSPI Expected to Break Upper Box Range

The U.S. stock market indices S&P 500 and Nasdaq smoothly digested the May Consumer Price Index (CPI) and the results of the Federal Open Market Committee (FOMC) meeting, setting new record highs. This has drawn attention to whether the KOSPI can break through the recent box top level of 2780.

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On the 12th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 38,712.21, down 35.21 points (0.09%) from the previous trading day. The large-cap focused S&P 500 index rose 45.71 points (0.85%) to 5,421.03, and the tech-heavy Nasdaq index closed up 264.89 points (1.53%) at 17,608.44.

The May CPI results released last night fell short of market expectations. As a result, U.S. Treasury yields dropped sharply. At the subsequent June FOMC meeting, the Federal Reserve (Fed) raised its benchmark interest rate forecasts for this year and next year. However, unlike the September FOMC meeting last year, when the rate outlook was also raised but the stock market experienced a 'spasm,' this time the market interpreted that no further rate hikes would occur. Additionally, Fed Chair Jerome Powell's comment that "the Fed members' projections are reasonable but not something to put too much weight on" also acted favorably for the market.

Among individual stocks, the big three?Apple (2.9%), Microsoft (1.9%), and Nvidia (3.6%)?led the market gains. Their combined market capitalization increased by 2.8% from the previous day to $9.625 trillion, accounting for about 20% of the S&P 500, marking an all-time high. Furthermore, the semiconductor value chain showed broad strength with Broadcom (2.4%), Micron (4.2%), and Qualcomm (3.3%) rising, pushing the Philadelphia Semiconductor Index and the VanEck Semiconductor Exchange-Traded Fund (ETF) up nearly 3%.

The domestic stock market is expected to break through previous highs, supported by the strong U.S. market. Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The new highs in the U.S. stock market will have a positive effect on the KOSPI," adding, "There is strong optimism about fundamental improvements, and the KOSPI may break through the recent box top level of 2780."

Han Ji-young, a researcher at Kiwoom Securities, said, "Due to the Nasdaq's strength, the domestic market may start with gains centered on growth stocks," and added, "Strong performance is expected in sectors related to Apple's domestic value chain, such as IT hardware, secondary batteries, and biotech."

On the same day, the one-month Non-Deliverable Forward (NDF) won-dollar exchange rate in New York was 1,369 won, and reflecting this, the won-dollar exchange rate is expected to start down 8 won.

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