[Good Morning Stock Market] "Eased U.S. Rate Concerns... Korean Market Expected to Open Higher"

Waller Signals Support for Holding Policy Rate
Market Eyes U.S. August Inflation Data

On September 4, the Korean stock market is expected to open higher, buoyed by eased concerns over a rate hike following comments by a U.S. Federal Reserve Governor and a positive close on the New York stock market.

On the 3rd (local time), all three major indices in the New York stock market rose. At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 53,686.11, up 624.16 points (1.18%) from the previous trading day. The S&P 500, centered on large-cap stocks, gained 81.11 points (1.06%) to 7,747.71, while the tech-heavy Nasdaq Composite finished at 26,584.06, up 366.23 points (1.40%).

The New York stock market was influenced by comments from Federal Reserve Governor Christopher Waller, who hinted at a potential pause in rate hikes. Speaking at an event hosted by Reuters, he stated, "If progress toward the 2% inflation target continues, I would be willing to support keeping the policy rate at its current level."

Governor Waller also said, "If inflation comes in hot, we would consider raising rates." As a result, the market's focus is now on the U.S. August employment report, which will be released on the 4th, and the upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) scheduled for next week.

A trader is working at the New York Stock Exchange in the United States. Photo by Reuters Yonhap News Agency

By sector, technology stocks were strong. Nvidia surged by 1.80%, Micron Technology by 0.22%, Intel by 1.80%, Meta by 3.01%, SpaceX by 6.42%, and Tesla by 5.42%. Robinhood, which has a high share of cryptocurrency trading, soared 16.57% following news that Bitcoin had broken through USD 80,000. Seagate fell by 1.23%, AMD dropped by 0.20%, and SK hynix ADR declined by 1.05%.

The Korean stock market is expected to start higher today. Han Ji-young, a researcher at Kiwoom Securities, said, "The Korean market is likely to open higher, supported by U.S. rate declines and a strong U.S. stock market following Governor Waller's remarks and the strong 1% gain in the KOSPI 200 nighttime futures," adding, "During the session, macroeconomic variables such as the market's wait-and-see approach for the U.S. August employment report and the direction of the yen need to be monitored, as the market is expected to shift into a sector rotation mode."

She added, "It is important to note that the surge in U.S. market interest rates, which was a key driver behind institutional net selling, is now subsiding," and explained, "Over time, as the domestic market's supply-demand foundation normalizes, the market is expected to return to a trajectory of higher lows."

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