[Good Morning Market] "U.S. Rallies on Ceasefire Hopes... Korea Also Expected to Open Higher"

Trump’s "Optimism Over Peace Talks" Eases Concerns in U.S. Markets

"Korean Market Undervalued... Tech Stocks Expected to Lead Gains"

As the U.S. stock market rebounded on hopes for a ceasefire in the Middle East, the domestic stock market is also expected to open higher, led by earnings-driven stocks, due to an easing of geopolitical concerns and upward revisions to this year’s earnings forecasts, which have resulted in undervaluation.

Reuters and Yonhap News

On April 9 (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 48,185.80, up 275.88 points (0.58%) from the previous session. The S&P 500, which is focused on large-cap stocks, rose 41.85 points (0.62%) to 6,824.66, while the tech-heavy Nasdaq finished at 22,822.42, up 187.42 points (0.83%).

The U.S. stock market opened lower as uncertainty about a ceasefire agreement in the Middle East increased due to Israel’s attacks on Lebanon. However, market sentiment shifted after a foreign news report stated that U.S. President Donald Trump was “very optimistic” about the peace negotiations scheduled for the 11th in Pakistan, and that he had spoken with Prime Minister Benjamin Netanyahu, with Israel expected to refrain from further attacks on Lebanon.

Separate from the Middle East conflict, undervaluation resulting from market corrections has become attractive, leading the S&P 500 and Nasdaq to rise for seven consecutive sessions. On this day, semiconductor hardware stocks such as Micron (3.6%), SanDisk (9.0%), Nvidia (1.0%), and Intel (4.7%) showed strong performance. Lee Sunghoon, a researcher at Kiwoom Securities, stated, “Since the beginning of this month, the Philadelphia Semiconductor Index has risen by 14.5%, and the sharp gains in semiconductor and hardware sectors are a positive factor for the domestic stock market, which has a high weighting in semiconductors.”

Korean time, the March Consumer Price Index (CPI) to be announced this afternoon is expected to have a significant impact on U.S. stocks. In particular, this CPI release is anticipated to be a highly sensitive indicator for the market, as it will provide the first confirmation of inflationary pressures resulting from rising energy prices since the outbreak of the war.

On April 10, with eased concerns over the Middle East conflict, the domestic stock market is expected to open higher, led by earnings-driven stocks, as earnings forecasts for domestic listed companies, such as those in the semiconductor sector, have been raised. On April 7, Samsung Electronics announced first-quarter operating profit of 57 trillion won, surpassing market expectations, and the annual KOSPI operating profit forecast for this year was significantly raised from 696 trillion won to 769 trillion won. With this upward revision in earnings forecasts, the KOSPI’s 12-month forward price-to-earnings ratio (PER) currently stands at 7.1 times, which is undervalued compared to the 10-year average of 10.1 times.

In addition to semiconductors, sectors such as capital goods (12.6%), securities (5.0%), IT hardware (4.8%), non-ferrous metals and lumber (4.6%), energy (4.5%), and IT home appliances (4.4%) have all seen their operating profit forecasts for this year increase over the past month. Researcher Lee stated, “In the latter half of April, as more analyst earnings previews and reviews are expected, we believe that, barring any additional negative macroeconomic shocks, the upward path for the KOSPI remains valid as earnings forecasts continue to be revised upward.”

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