FOMC, High Oil Prices Disrupt KOSPI Market

The direction of interest rate decisions by the U.S. Federal Open Market Committee (FOMC) and rising international oil prices are increasing volatility in the domestic stock market.

The KOSPI index fell for the first time in four trading days in the previous session, closing down 1.38% at 2,598.87. Foreign investors sold stocks worth 1.4607 trillion won, but buying by individual and institutional investors could not fully absorb this selling pressure.

Changes in expectations for interest rate cuts following the FOMC meeting and increased inflationary pressure due to rising international oil prices driven by geopolitical risks in the Middle East have impacted investor sentiment.

Today's stock market saw varied stock price movements based on the future earnings outlook (guidance) of major big tech companies. As earnings announcements from big tech firms were mixed, the domestic market also showed differentiation based on earnings guidance. Alphabet rose, while Meta fell, highlighting earnings announcements as a market variable. Among sectors, the power equipment industry showed strength.

The market today reflected the FOMC's stance, international oil price trends, big tech earnings guidance, and foreign investor trading flows.