[Market View] It barely rebounded… Will KOSPI be shaken again by concerns about the US ‘big step’?

On the 11th, the domestic stock market is likely to start lower due to a decline in the New York stock market due to the possibility of an interest rate increase in the United States and profit-taking sales following the previous day's surge.

While the U.S. Consumer Price Index (CPI) in October exceeded market expectations, the fact that U.S. Federal Reserve Director Christopher Waller mentioned the possibility of a 'big step' by raising the benchmark interest rate by 50bp (1bp = 0.01% point) is expected to put a burden on the index.

The previous day, the KOSPI index closed at 5,239.13, up 220.28 points (4.39%) from the previous day, rebounding for the first time in four trading days since the U.S. midterm elections.

The index soared from the beginning of the market, and a buy sidecar (temporary suspension of program bids) was activated just 6 minutes after opening.

As of the close of regular trading at 3:30 p.m., foreigners showed a buying advantage of 358.6 billion won, turning into net buyers after 8 trading days. Institutions made net purchases of 497.9 billion won, and individuals net sold 1.3395 trillion won.

Including the aftermarket, foreigners and institutions made net purchases of 443.9 billion won and 464.2 billion won, respectively, and individuals net sold 1.3947 trillion won.

KOSPI showed a cool upward trend for the first time in a long time due to a combination of favorable factors such as a rebound in US technology stocks and a plunge in international oil prices due to expectations of easing tensions in the Middle East. Samsung Electronics [005930] and SK Hynix [000660] rose 4.74% and 6.69%, respectively.

The KOSDAQ index also showed a sharp rise to the point where the buying sidecar was activated in the early hours of trading, and closed at 667.61, up 28.64 points (4.48%).

In the New York stock market last night, the Dow Jones Industrial Average fell 0.3%, and the Standard & Poor's (S&P) 500 Index and Nasdaq Composite Index fell 0.38% and 0.74%, respectively.

In the United States, the October CPI rose 0.4% compared to the previous month, and the core CPI (price index excluding energy and food) rose 0.3%, both exceeding market expectations by 0.1 percentage points, supporting the outlook for stronger austerity measures.

Prior to the CPI announcement, investment sentiment appears to have weakened further when Director Waller mentioned the possibility of a 'big step', saying, "If the core CPI increase rate is around 0.3% or higher, stronger policy measures may be needed."

Due to the prospect of stronger tightening, the interest rate on 10-year U.S. Treasury bonds exceeded 5% during the day. However, the increase decreased in the second half of the day and fell back to the 4% range.

In addition, memory-related stocks showed weakness as concerns were added about strengthening semiconductor regulations following the affair scandal of Nvidia CEO Jensen Huang.

Micron (-1.1%), SK Hynix American Stock Depository (ADR) (-3.51%), and SanDisk (-2.99%) fell.

Nvidia fell 5.47%, falling sharply for two consecutive days following the previous trading day (-4.27%).

The Philadelphia Semiconductor Index fell 0.36%, and the Morgan Stanley Capital International (MSCI) Korea Stock Market Exchange Traded Fund (ETF) fell 2.05%.

CoreWeave, a neocloud company announced after the New York Stock Exchange closed, recorded sales in the third quarter of $3.661 billion. This is a 168% increase compared to the same period last year and exceeds market expectations ($3.55 billion).

Operating profit was $207 million, a 298% increase from the same period last year ($52 million). However, it recorded a net loss of $790 million.

This year's annual sales forecast was raised from $12.4 billion to $13.2 billion to $13 billion to $13.3 billion, higher than market expectations. Coreweave stock price is rising in after-hours trading.

Meanwhile, last night, Brent crude oil futures for January delivery closed at $91.49 per barrel, down 1.17% from the previous day, and U.S. West Texas Intermediate (WTI) futures for December delivery closed at $86.04, down 0.93%. All are the lowest levels since August 31st.

Mirae Asset Securities Managing Director Seo Sang-young said, "The fact that the possibility of a big step by the Federal Reserve in December has been highlighted is expected to stimulate the desire to take profits following the previous day's (domestic stock market) surge," and added, "It is also a burden that the controversy related to CEO Jensen Hwang has spread due to the U.S. Congress's move to strengthen regulations on semiconductor exports to China."

He continued, “However, the fact that international oil prices have fallen due to the easing of geopolitical risks and the fact that the U.S. stock market has reduced the extent of weakness as the intraday increase in government bond yields has narrowed is a positive factor,” and added, “With the option expiration date one day away, an increase in intraday volatility is inevitable, but the decline in the index is expected to be limited due to the strong demand for retracements due to the decline.”