[Good Morning Market] S&P, Nasdaq Hit Record Highs on Ceasefire Hopes... Rebound Expected for Korea

April PCE Inflation Also Eases Concerns

On May 29, the KOSPI is expected to rebound and offset the previous day's decline, driven by the imminent conclusion of a US-Iran ceasefire extension agreement and easing inflation concerns.

On May 28 (local time) in the New York Stock Exchange, the Dow Jones Industrial Average closed at 50,668.97, up 24.69 points (0.05%). The S&P 500 index ended at 7,563.63, up 43.27 points (0.58%) from the previous session, while the tech-heavy Nasdaq index finished at 26,917.47, up 242.74 points (0.91%). Both the S&P 500 and Nasdaq set new all-time highs.

First, the anxiety over military conflict that had spread throughout Asian markets the previous day has subsided. Reports emerged that the United States and Iran have reached a provisional agreement on a memorandum of understanding (MOU) for a 60-day ceasefire extension, including the resumption of passage through the Strait of Hormuz. In addition, the Personal Consumption Expenditures (PCE) inflation rate for April matched the market expectation of 3.8%, further easing inflation concerns to some extent.

After market close, Dell’s surprise earnings beat and upward guidance revision, driven by robust performance in its server business, sent its after-hours share price soaring by over 30%. This is seen as a positive factor, as it strengthens the visibility of memory demand centered on servers and helps maintain the dominance of leading sectors such as semiconductors.

On the 27th, as the KOSPI index surpassed 8,400 points intraday triggering a buy-side circuit breaker, the current status of the domestic stock market was displayed on the electronic board in the dealing room of Hana Bank’s headquarters in Jung-gu, Seoul. May 27, 2026 Photo by Kang Jinhyung

On the previous day, the KOSPI saw a decline of more than 4% due to weakness in the US Philadelphia Semiconductor Index, the burden of the prior day’s sharp rally, and Iran’s attack on a US Air Force base. However, retail investors’ net buying helped recoup part of the losses. For May 29, expectations for renewed US-Iran negotiations, a strong 2.9% overnight gain in KOSPI200 futures, and Dell’s after-hours stock surge are likely to support a rebound, especially in sectors that had seen excessive declines.

However, since May, the domestic stock market has experienced frequent intraday swings, increasing fatigue among market participants. Although macroeconomic pressures have triggered volatility on the surface, experts believe that internal, market-specific factors have further amplified volatility. Ji-Young Han, a researcher at Kiwoom Securities, stated, "The growing influence of Samsung Electronics and SK hynix on the market has led to a supply-demand black hole phenomenon. When combined, the two stocks account for 50.5% of the KOSPI’s total market capitalization, effectively tying the market’s performance to these two stocks."

Another reason for the heightened volatility is that this month’s stock price gains have been driven more by rising multiples than by actual profit growth, which may keep the market highly sensitive for the time being. Han added, "Given that the market’s rally this month has been led by multiple expansion, it is important to note that, in the short term, the market may remain highly sensitive to macro variables such as interest rates or to simple supply-demand issues."

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