Trump Accepts 'Two-Week Ceasefire' Proposal... "Korean Stock Market Expected to Reflect Positive Factors" [Good Morning Market]

Trump Agrees to Two-Week Ceasefire
on Condition of Opening the Strait of Hormuz

Mirae Asset: "Investor Sentiment Reverses and Samsung’s Strong Earnings to Be Reflected"

U.S. Market Narrows Losses on Hopes of Extended Negotiations

The U.S. stock market pared its losses in the latter part of the session after Pakistan, a mediator in the Middle East war, proposed a two-week extension to the negotiation deadline. With U.S. President Donald Trump accepting this proposal, the domestic stock market is expected to show a positive trend.

On April 7 (local time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell by 85.42 points (0.18%) to close at 46,584.46, compared to the previous session. On the other hand, the large-cap-focused S&P 500 Index rose by 5.02 points (0.08%) to 6,616.85, and the tech-heavy Nasdaq Index gained 21.51 points (0.10%) to finish at 22,017.85.

In the early part of the session, the U.S. stock market weakened due to a sharp rise in oil prices triggered by the Middle East war. According to foreign media outlets such as Axios the previous day, U.S. forces attacked military facilities on Kharg Island, Iran’s largest oil export terminal. Market anxiety was heightened by news that Iran had cut off direct communication with President Trump following his threat to "wipe out Iranian civilization."

However, the market sentiment improved when Pakistan, acting as a mediator, proposed a two-week extension of the negotiation deadline to President Trump. Kiwoom Securities commented, "This is essentially a ceasefire, but uncertainties regarding the opening of the Strait of Hormuz remain, and future changes in President Trump's position could still create market noise." The firm added, "The repeated extensions of negotiations suggest that both the U.S. and Iran see diminishing benefits from prolonging the war."

The domestic stock market is expected to start higher today, buoyed by the narrowing losses in the U.S. market during trading hours, positive news in the semiconductor sector such as Broadcom's long-term contract for Tensor Processing Units (TPUs) with Alphabet and the intraday rebound of Micron. Furthermore, President Trump’s acceptance of a two-week ceasefire proposal, conditional on Iran agreeing to open the Strait of Hormuz, is expected to support a positive market trend in the early session.

Sukkyoon Kang, a researcher at Mirae Asset Securities, commented, "It appears we have witnessed a rare display of a strong TACO (Trump Always Caves Out)," adding, "Today, we expect positive factors such as a sharp reversal in investor sentiment, a return of foreign inflows, and the re-reflection of Samsung Electronics’ outstanding earnings from the previous day to be fully reflected in our market."

Kiwoom Securities also focused on the first-quarter earnings announcements by companies, led by Samsung Electronics’ strong performance. On the previous day, Samsung Electronics announced through a regulatory filing that its preliminary first-quarter results showed sales of 133 trillion won and operating profit of 57.2 trillion won. This far exceeded the market consensus for operating profit, which was around 38 trillion won. Kiwoom Securities stated, "This earnings season could serve as a turning point in overcoming the downward pressure on stock prices caused by the war."

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