U.S. Rallies on Hopes for U.S.-Iran Deal... Korea Expected to Attempt KOSPI 8,000 Breakthrough [Good Morning Market]

Oil Prices Drop on Ceasefire Hopes
Semiconductor Rally Drives Market Higher

As the U.S. stock market rebounded on the back of expectations for a deal between the United States and Iran and a rally in semiconductor stocks following a decline in market interest rates, there is an outlook that Korea’s stock market will also attempt to break through the 8,000-point level on the KOSPI, buoyed by these positive external factors.

As military tensions between the United States and Iran escalated again, the New York Stock Exchange closed down across the board, and the domestic KOSPI also opened down more than 2%. On the 11th, an employee was monitoring the stock market and exchange rates in the dealing room at the Headquarters of Hana Bank in Jung-gu, Seoul. On that day, the KOSPI started the session at 7,509.62, down 221.20 points (2.86%) from the previous trading day. Photo by Jo Yongjun, June 11, 2026

On June 11 (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 50,848.75, up 929.97 points (1.86%) from the previous session. The S&P 500, which focuses on large-cap stocks, rose 127.31 points (1.75%) to 7,394.30, while the tech-heavy Nasdaq climbed 640.16 points (2.54%) to close at 25,809.66.

U.S. President Donald Trump canceled an airstrike against Iran and hinted that a ceasefire agreement with Iran was in its final stages, leading to a sharp drop in oil prices. On the same day at the London ICE Futures Exchange, the August delivery Brent crude futures settled at $90.38 per barrel, down 2.92% from the previous session, while the July delivery West Texas Intermediate (WTI) crude futures on the New York Mercantile Exchange fell 2.58% to $87.71 per barrel.

Another factor that contributed to market relief was the better-than-expected performance of the Producer Price Index (PPI) in May, following the Consumer Price Index (CPI). The headline PPI for May rose 6.5% year-on-year, slightly above the market expectation of 6.4%, but the core PPI increased by 4.9% year-on-year, below the market forecast of 5.4%.

Han Jiyoung, a researcher at Kiwoom Securities, said, "The stabilization of the core PPI can be interpreted as a sign that the spread of energy inflation is limited." Regarding the ongoing negotiations between the U.S. and Iran, she added, "The increased possibility that the war-related noise and energy inflation have peaked is also a factor that is at least neutral or better for the market."

The robust performance of semiconductor stocks, including Micron (up 11.7%), Intel (up 9.3%), and Nvidia (up 2.2%), also supported the rise in U.S. equities.

The Korean stock market is expected to attempt to reach the 8,000-point threshold on the KOSPI on June 12, driven by positive external catalysts such as the imminent ceasefire agreement between the U.S. and Iran, easing of inflation concerns in May, and the strong performance of U.S. semiconductor stocks. The KOSPI 200 overnight futures closed up 7.58%, suggesting an initial upward trend at the opening, while sector rotation is expected to continue during the session.

Experts in the securities industry emphasize the need for a portfolio strategy focused on leading stocks with strong earnings momentum, given the ongoing market volatility. One analyst noted, "During the correction phase that began on the 5th and lasted through the previous session, the KOSPI fell about 4.9%, while the leading sector, semiconductors, declined only 4.5%, roughly in line with the broader market. Other leading sectors benefiting from foreign inbound demand, such as department stores and retail distribution (up 8.6%), cosmetics (up 2.7%), and hotels (up 0.8%), as well as AI value chain stocks in IT hardware (up 1.2%), also posted positive returns."

It was also noted that the concentration on semiconductor stocks is easing. The analyst stated, "Within the framework of the barbell strategy—which involves holding both leading and undervalued sectors—it may not be a bad idea to pay attention to sectors that have underperformed during this correction phase, even though their unique investment points remain intact," citing the securities and banking sectors as examples.

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