The KOSPI has reached an all-time closing high, approaching the 9,000 mark, as investors await the impact of the U.S. 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 1.21%, and the tech-heavy Nasdaq Composite decreased by 1.34%. Analysts attribute the declines to a more hawkish interpretation of the FOMC results, which dampened investor sentiment.
Fed officials had previously indicated in their March economic projections that they expected one rate cut this year, but they revised their outlook to anticipate one rate hike in the updated economic forecast.
Seo 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 previous day, the KOSPI closed at 8,864.24, up 137.64 points (1.58%), marking a new all-time high. It is now just 135.76 points away from the 9,000 level.
As of 8:01 a.m., in the NXT premarket, Samsung Electronics traded at 345,500 won, down 0.58%, while SK Hynix was down 0.16% at 2,517,000 won.
Market analysts suggest that while a period of consolidation may occur due to the FOMC's impact, the strong demand for large-cap stocks in the semiconductor and artificial intelligence sectors could support the index's lower boundary.
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 scenario and that U.S. futures are rebounding, we believe that leading stocks like semiconductors will show downward support and recover during the trading day."
* This article has been translated by AI.
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