[Anchor]
Global stock markets are moving quickly! Our domestic stock market is moving broadly! This is 3-minute market news.
We are joined by the reporter Jeong Yun-gyo from Yonhap Infomax.
Welcome.
First, how did the U.S. stock market finish last night?
[Reporter]
Last night, the New York stock market declined, continuing a breath-holding trend.
The Trump rally seems to be losing momentum.
The new inflation indicators fueled inflation concerns, and with Jerome Powell, the Federal Reserve Chairman, expressing caution on rate cuts, major indices fell.
Let’s look at the three major indices.
The Dow Jones index fell by 0.47% compared to the previous session.
The S&P 500 index fell by 0.6% and the Nasdaq index by 0.64% from the previous trading day.
Chairman Powell attended an event hosted by the Dallas Fed and stated that the U.S. economy is not sending any signals that it needs to hurry to cut rates.
He also mentioned that because the U.S. economy is strong, they would take a cautious approach to monetary policy decisions.
While inflation is getting closer to the Fed’s target of 2%, it still hasn’t reached it, he diagnosed.
With Chairman Powell suggesting the possibility of adjusting the pace of rate cuts, major indices in the New York stock market fell.
[Anchor]
How did the key economic indicators in the U.S. turn out last night?
[Reporter]
Yes, new employment and inflation indicators that could affect the Federal Reserve’s rate decisions were released.
First, the employment indicators were at a satisfactory level.
The number of new unemployment insurance claims last week was calculated at 217,000 on a seasonally adjusted basis.
This is the lowest level in six months and was a decrease of 4,000 from the previous week.
On the other hand, the October producer price index, an inflation indicator, signaled that it is too early for the Fed to declare victory in the fight against inflation, following the consumer price index announced the previous day.
The October producer price index rose by 0.2% from the previous month and by 2.3% from the same month of the previous year.
While this was in line with market expectations, the increase was larger than the previous month, causing some concern.
With the inflation index further increasing its upward trajectory, and Powell’s cautious stance on rate cuts emerging, the likelihood of a rate cut in December has receded.
The Chicago Mercantile Exchange Group’s FedWatch tool significantly lowered the probability of the Fed cutting rates by 25 basis points in December from 82% the previous day to 59% overnight.
[Anchor]
Let’s also look into how specific stocks performed. Tesla, which was considered the biggest beneficiary of Trump’s election, has turned to a decline last night.
[Reporter]
Yes, Tesla’s stock price fell nearly 6%.
Tesla’s stock price, which had soared nearly 40% after last week’s presidential election, is now showing signs of correction this week.
It is reported that the second Trump administration is pushing for the abolition of electric vehicle incentives.
There are also reports of dissatisfaction among Trump’s close aides about Elon Musk, Tesla’s CEO, meddling in all issues.
The securities sector is examining whether Musk’s behavior could be a long-term positive factor for Tesla stocks.
Meanwhile, Walt Disney revealed quarterly earnings that exceeded expectations and surged by over 6%.
Super Micro Computer, facing delisting threats amid accounting fraud allegations, fell over 11% as the deadline for submitting accounting reports required by the authorities was postponed.
[Anchor]
Now, let’s review the domestic stock market situation. How did the KOSPI market close yesterday?
[Reporter]
Yesterday, the KOSPI ended for the second day in the 2,410 range.
It attempted to rebound due to bargain hunting, but the session ended with slight gains as Samsung Electronics turned downward at the end.
The KOSPI’s closing price rose 0.07% from the previous session to 2,418.86.
It succeeded in increasing slightly for the first time in five trading days.
By investor category, institutions purchased nearly 300 billion won, supporting the market.
In the foreign exchange market, the won-dollar exchange rate ended at 1,405.1 won, down 1.5 won from the previous day.
Though the rise halted due to the foreign exchange authorities’ verbal intervention, it maintained the 1,400 range for the third consecutive day.
The authorities’ verbal intervention raised expectations for a rebound in the stock market.
However, Samsung Electronics’ decline in the later half reduced the index’s increase.
Among the top 10 market capitalization stocks, all except Samsung Electronics, SK Hynix, and KB Financial rose.
[Anchor]
It seems we need to talk about Samsung Electronics again. Samsung Electronics’ stock price has eventually fallen to the 40,000 won range.
[Reporter]
Yes, Samsung Electronics’ stock price falling to the 40,000 won range is the first time in 4 years and 5 months.
Yesterday, Samsung Electronics closed at 49,900 won, down 1.38% from the previous session.
Yesterday’s closing price was the same as the closing price on June 15, 2020.
This time, foreign investors’ net selling exceeded 470 billion won, dragging down the stock price.
Samsung Electronics’ stock price has fallen for five consecutive trading days, decreasing by 13%.
Its market capitalization also fell below 300 trillion won.
With Samsung Electronics’ stock price, once called the national stock, falling to the 40,000 won range, it’s estimated that about 4.25 million small domestic shareholders are suffering significant damage.
In the securities sector, while the decline in Samsung Electronics’ stock price is still seen as excessive, they cannot predict a specific rebound timing.
This is not only due to issues with Samsung Electronics’ competitiveness but also because concerns about the semiconductor industry are growing under the second Trump administration.
Analyses suggest that if global trade wars escalate under the Trump administration, the semiconductor industry could suffer heavily.
These concerns have led not only to Samsung Electronics but also to generally weak domestic semiconductor stocks.
SK Hynix plummeted by 5.4%, Hanmi Semiconductor by 1.2%, and PSK Holdings by 5.6%.
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