US-Middle East tensions cause domestic stock market to plummet...KOSPI closes at 5,763.22

The domestic stock market, amid the tense atmosphere of the Middle East conflict and influenced by the decline in U.S. stocks, is expected to face pressure at the opening. The U.S. New York Stock Exchange performed weakly due to reduced chances of Federal Reserve rate cuts and turmoil in the Middle East, with all three major indices closing lower. Notably, the Dow Jones Industrial Average fell by 0.96%, showing a sluggish trend.

Similarly, the domestic stock market has not escaped the impact of Middle East instability, rising international oil prices, and uncertainty over the U.S. benchmark interest rate, continuing its downward trend. On September 19, South Korea’s KOSPI index dropped 161.81 points from the previous trading day, closing at 5,763.22 points. This was influenced by the won-to-dollar exchange rate reaching a high after the financial crisis and rising international oil prices. Large-cap stocks like Samsung Electronics and SK Hynix also shifted from gains to losses, confirming the overall market weakness.

In the KOSDAQ market, Samchully Pharmaceuticals surged 14.09% after submitting a European clinical trial plan, becoming the top market cap. This was one of the reasons for the KOSDAQ index’s rise compared to the previous trading day, presenting a stark contrast to the decline in the U.S. tech-heavy stock market.

The U.S. Federal Reserve, concerned about prolonged Middle East conflict and rising inflation fears, is carefully considering a rate cut. Meanwhile, U.S. President Donald Trump issued a tough message to Iran via Twitter, further escalating tensions in the Middle East. These developments could add additional uncertainty to the global economy and financial markets.

Looking ahead, the domestic stock market is expected to be largely influenced by the direction of U.S. interest rates and whether military tensions among major powers escalate. Experts believe the weekly volatility range for the domestic market will be between 5,500 and 6,000 points, with a focus on semiconductor industry performance and foreign investors’ movements.