[Good Morning Markets] US Closes Mixed... Korean Volatility Expected to Continue

U.S. Market Recovers from Mid-Session Losses to Close Off Lows

May CPI to Determine Direction of Market Correction

Korea Sees 8% Swings... "Limited Benefit to Selling Strategy"

As the U.S. stock market is expected to move in response to the May U.S. Consumer Price Index (CPI) set to be released on June 10, Korea is also expected to continue its volatile market trend following the 8% fluctuations seen earlier this week.

On the 9th, the KOSPI index opened at 7,697.76, up 213.35 points from the previous trading day, displayed on the status board of the domestic stock market in the dealing room of Hana Bank in Jung-gu, Seoul. On the same day, the won-dollar exchange rate started trading at 1,529.4 won, down 5.6 won from the previous trading day. Photo by Jinhyung Kang, June 9, 2026

On June 9 (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (Dow Jones) closed at 50,872.11, up 86.10 points (0.17%) from the previous trading day. The S&P 500 index, which focuses on large-cap stocks, ended at 7,386.65, down 19.08 points (0.26%), while the Nasdaq index, which focuses on technology stocks, closed at 25,678.82, down 250.84 points (0.97%).

Han Ji-young, a researcher at Kiwoom Securities, commented, "The U.S. stock market was on a downward trend until mid-session due to news of the U.S. helicopter being shot down by Iran, the suspension of data center developer Crusoe’s Wyoming project, and caution ahead of the release of the May U.S. CPI." She added, "However, the market pared losses and closed off its lows, supported by remarks from U.S. President Donald Trump signaling imminent U.S.-Iran negotiations, as well as an optimistic outlook for memory demand."

The upcoming announcement of the May CPI is expected to determine whether the market will undergo a correction. The market consensus for May’s headline CPI and core CPI is a year-on-year increase of 4.2% and 2.9%, respectively. This indicates that the market is proactively preparing for inflationary pressures. Last month, the headline CPI rose 3.8% year-on-year, while the core CPI increased by 2.8%.

Han noted, "With the draft agreement between the U.S. and Iran entering the acceptance stage, the potential opening of the Strait of Hormuz could lead to a drop in oil prices and an easing of energy inflation, which is a positive development." She analyzed, "Even if the May CPI merely meets consensus expectations, it could provide relief to the stock market, especially given the heightened inflation expectations."

The domestic stock market is expected to maintain its volatile trend around the 8,000 level on the KOSPI, due to short-term profit-taking following the previous day’s 8% surge and caution ahead of the May CPI. The KOSPI experienced a sharp decline of 8.3% on June 8, followed by an 8.2% rally the next day, showing highly volatile, roller-coaster-like movements.

The KOSPI200 Volatility Index (VKOSPI), a measure of the expected future volatility of the KOSPI200, hit a record high of 91.23 the previous day, the highest level since data began in April 2009. This surpasses the previous peak of 83.58, which was recorded just after the outbreak of war between the U.S. and Iran. Additionally, while the theoretical expected price fluctuation at VKOSPI 90 is ±5.7%, actual volatility recently reached the ±8% range, underscoring the extreme market volatility seen in recent sessions.

Han stated, "As most of the flows in spot and leveraged exchange-traded funds (ETFs) are concentrated in semiconductors, which are the leading stocks, and as long as this environment of high semiconductor influence on the KOSPI persists, such disorderly price movements will be frequent." She added, "However, as we have seen several times, responding to volatility in the domestic market by selling in a phase where profit momentum and valuation attractiveness remain high has not proven to be particularly effective."

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