On the 19th, the domestic stock market is expected to be exposed to downward pressure.
On this day, Kiwoom Securities noted in its report titled 'December FOMC that led to a sharp decline in the U.S. stock market, what are the countermeasures?' that 'since the U.S. stock market has sharply declined, the domestic stock market is also expected to be exposed to downward pressure today.'
Overnight, shares leading the recovery in the New York stock market, such as Tesla (-8.2%) and Broadcom (-6.9%), all fell simultaneously. The technology-focused Nasdaq faced a correction of around 3%, and the 10-year bond yield surged to around 4.5%.
Han Ji-young, a Research Institute analyst at Kiwoom Securities, said, 'The December FOMC was a shock,' adding that 'the long-term neutral interest rate was raised from the previous 2.875% to 3.00%, suggesting that the Federal Reserve's rate cuts may not be significant.'
Additionally, Micron's sharp drop in after-hours trading is also cited as a burden. Micron's poor performance led to its stock price plummeting by over 10% in after-hours trading, raising the likelihood of downward pressure on domestic semiconductor stocks as well.
One analyst stated, 'Due to the unexpectedly hawkish December FOMC resulting in a sharp decline in the U.S. stock market, soaring dollar and exchange rates, and Micron's drop in after-hours trading, the domestic stock market is expected to open lower today.'
He further assessed that 'as various domestic and international adverse factors (Trump risk, uncertainty in Federal Reserve policies, sluggish profits and exports, etc.) have been factored in throughout the fourth quarter, the KOSPI has entered a phase of downward rigidity around the 2400 mark.'