[Good Morning Market] US Rises on Lower-Than-Expected CPI... Korea Set to Open Higher

U.S. CPI Comes in Below Expectations: "Lower Likelihood of Further Tightening"


KOSPI Expected to Open Higher on Perception of Oversold Conditions

The U.S. stock market closed higher despite geopolitical uncertainties stemming from the Middle East, driven by consumer price index (CPI) results that came in lower than market expectations and a strong performance in the semiconductor sector. The domestic stock market is also expected to open higher, reflecting these factors.

On the 14th, employees are monitoring the stock market and exchange rates in the dealing room of Hana Bank's headquarters in Jung-gu, Seoul. As of 9:05 a.m. on the same day, the KOSPI is trading at 6,669.64, down 137.29 points (2.02%) from the previous trading day. Following a sharp 8.95% drop the previous day, closing at 6,806.93, the downward trend continues on this day as well. July 14, 2026 Photo by Yongjun Cho

On July 14 (local time), the Dow Jones Industrial Average finished at 52,508.27 on the New York Stock Exchange (NYSE), up 9.63 points (0.02%) from the previous trading day. The S&P 500, which focuses on large-cap stocks, rose 28.25 points (0.38%) to close at 7,543.59, while the tech-heavy Nasdaq climbed 233.83 points (0.90%) to 26,107.01 at the close.

The U.S. CPI for June, released on this day, rose 3.5% year-on-year, slowing from 4.2% in May. This figure also came in lower than the 3.8% forecast by experts surveyed by Dow Jones. The energy sector led the easing of inflation, with energy prices dropping by 5.7%, including a sharp 9.7% decline in gasoline prices. The core CPI, which excludes the highly volatile food and energy categories, remained flat (0.0%) compared to the previous month, also below the 0.2% estimate.

Yumi Kim, a researcher at Kiwoom Securities, commented, "Since Christopher Waller, a Federal Reserve Governor, previously mentioned that if core inflation comes in high, an additional rate hike should be considered, this inflation result lowers the likelihood of further tightening by the Fed." She added, "As interest rate pressures ease and risk appetite recovers, the upward trend in the stock market has been broadened, especially for semiconductor-related stocks."

With the relief in inflation and interest rate pressure, U.S. semiconductor stocks, led by SK hynix ADR (up 27.29%), posted strong gains. Other major semiconductor stocks increased in tandem, with Sandisk up 5.01%, Micron up 4.92%, and Nvidia up 4.06%, driving the Philadelphia Semiconductor Index higher by 2.54%.

U.S. financial stocks, which have entered reporting season, recorded earnings and trading profits that exceeded market expectations, but stock price movements diverged depending on the outlook for future profitability. Goldman Sachs (up 9.00%), Morgan Stanley (up 2.98%), JPMorgan (up 2.50%), and Bank of America (up 1.88%) showed strength, while Citigroup (down 5.29%) and Wells Fargo (down 2.71%) declined.

The domestic stock market on July 15 is expected to start on an upward note, reflecting overnight gains in the KOSPI200 futures (up 5.0%) and Philadelphia Semiconductor Index (up 2.5%). Given the recent steep drop led by semiconductor stocks, a technical rebound and inflow of bargain-hunting are anticipated due to perceptions that the previous decline was excessive.

While tensions in the Middle East are rising again, there is still room for negotiation. U.S. President Donald Trump also withdrew his plan to collect tolls on the Strait of Hormuz on July 14 (local time). Additionally, the lower-than-expected U.S. consumer price data has temporarily relieved macroeconomic pressures, which is seen as somewhat positive.

However, for this rebound to be sustained, it will be important to confirm earnings related to artificial intelligence (AI) investments and memory demand. Kim noted, "Going forward, the earnings and capital investment plans of U.S. big tech companies will be the key variables for determining the sustainability of semiconductor demand." She added, "It will be necessary to verify the potential for continued industry recovery through ASML and TSMC's earnings reports and guidance for orders and capital expenditures scheduled for this week."

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