[Good Morning Market] New York Stocks Pare Losses on 'Trump Remarks'... Korean Market Also Eyes Rebound

Trump Says “No Intention to Deploy Ground Troops”
Volatility Persists with International Oil Price Fluctuations
Micron Falls 3.78%, Investment Rating Downgraded

Despite heightened tensions in the Middle East, the U.S. stock market in New York managed to recover a significant portion of its intraday losses and closed higher, supported by U.S. President Donald Trump's remarks urging restraint and discouraging escalation. The domestic stock market is also expected to seek opportunities for a rebound.

On the 19th, as concerns about the prolonged Middle East war and rising international oil prices led to a decline in the domestic stock market and an increase in the won/dollar exchange rate, employees are monitoring the stock market and exchange rates in the dealing room at the Seoul Hana Bank headquarters. On this day, the KOSPI opened at 5761.40, down 2.76% from the previous trading day, and the won/dollar exchange rate started at 1505 won, up 21.9 won. Photo by Jo Yongjun

On the 19th (local time), the Dow Jones Industrial Average closed at 46,021.43, down 203.70 points (0.44%) from the previous session. The S&P 500 Index ended at 6,606.49, down 18.21 points (0.27%), while the tech-heavy Nasdaq Composite Index closed at 22,090.69, down 61.73 points (0.28%).

Israel bombed Iran’s largest gas field, South Pars, and the natural gas refining complex in Asaluyeh on Iran’s southwestern coast the previous day. In retaliation, Iran struck the Ras Laffan gas facility in Qatar, a key hub for liquefied natural gas (LNG) production, while Saudi Arabia and Kuwait’s refineries were also attacked by Iran. Qatar’s state-owned energy company stated that, due to the attack on its LNG facility, it may have to declare force majeure for up to five years on long-term supply contracts with countries including Korea.

International oil prices rose. Brent crude futures for May delivery rose 1.2% from the previous session to $108.65 per barrel. Brent crude at one point soared to as high as $119 per barrel. On this day, U.S. President Donald Trump said during a summit with Japanese Prime Minister Sanae Takaichi that he had urged Israeli Prime Minister Benjamin Netanyahu not to launch further attacks on Iran’s oil and gas facilities. When asked whether he intended to deploy or reinforce U.S. ground troops in Iran, he replied, “No.” Prime Minister Netanyahu stated that Israel would no longer bomb Iran’s gas fields.

U.S. Treasury yields, which had surged at one point on inflation concerns due to rising oil prices, ended the session with only a slight uptick. The yield on the 2-year U.S. Treasury, which is sensitive to monetary policy, climbed as high as 3.96% during the session—its highest level since August of last year—but ended at 3.79%, up 5 basis points (1bp = 0.01 percentage point).

The market is closely watching oil price trends. Dennis Palmer of Montis Financial said, “What the market is trying to gauge is how long elevated oil prices will persist. That is exactly why we are seeing such volatility.” Dubravko Lakos-Bujas of JPMorgan Chase commented that, given the typical impact of surging oil prices on equities, investors betting on a swift resolution to the war are taking a risky gamble.

Han Ji-young, a researcher at Kiwoom Securities, said, “From the perspective of the domestic stock market, Micron’s earnings may be a more important issue than the war, and the negative outlook presented has had an effect. For the time being, there may be ‘peak-out’ noise not only for Micron but also for Samsung Electronics and SK Hynix, but it is appropriate to at least maintain the current allocation of leading semiconductor stocks.”

Suh Sangduk, a researcher at Mirae Asset Securities, said, “Micron reported earnings that far exceeded expectations but fell 3.78%, citing increased capital expenditures as a reason. Summit Insights downgraded its investment rating on Micron from ‘Buy’ to ‘Neutral,’ predicting that the upward trend will slow in the second half of fiscal year 2026.”

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