The KOSPI index has reached an all-time high, approaching the 9,000 mark, as investors await the implications of the Federal Reserve's hawkish Federal Open Market Committee (FOMC) results.
On June 17, U.S. stock markets closed lower, with all three major indices declining. The Dow Jones Industrial Average fell by 0.97%, the S&P 500 dropped by 1.21%, and the tech-heavy Nasdaq Composite decreased by 1.34%. Analysts attribute the downturn to the FOMC's more hawkish interpretation than expected, which dampened investor sentiment.
Fed officials had previously indicated in March that they anticipated one rate cut within the year. However, in the latest economic projections, they shifted their stance to expect one rate hike instead.
Suh Sang-young, a researcher at Mirae Asset Securities, commented on the FOMC results, stating, "The strong dollar, rising interest rates, and falling stock markets have been observed. However, the Fed still suggests rate cuts after 2027, indicating that the market impact may be limited."
On the same day, the KOSPI closed at 8,864.24, marking a new all-time high, just 135.76 points shy of the 9,000 level.
As of 8:01 a.m., in the NXT pre-market, Samsung Electronics traded at 345,500 won, down 0.58%, while SK Hynix was down 0.16% at 2,517,000 won.
Market analysts predict a period of consolidation in the short term due to the FOMC's impact. However, they believe that the strong demand for large-cap stocks in the semiconductor and artificial intelligence sectors, which have been driving the domestic market, may support the index's lower levels.
Han Ji-young, a researcher at Kiwoom Securities, noted, "The domestic market is expected to start lower due to the hawkish June FOMC and the pressure from five consecutive days of gains. However, considering that the June FOMC did not deviate from the market's shock scenarios and that U.S. futures are rebounding, we anticipate that leading stocks like semiconductors will show resilience and recover during the trading session."
* This article has been translated by AI.
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