With the Federal Open Market Committee (FOMC), the Fed's primary decision-making body, and the earnings announcements of the mega-cap technology stocks leading the New York Stock Exchange overlapping, global investors are closely watching. The U.S. stock market showed a slight correction ahead of these events on the 28th local time, but attention is focused on whether the domestic market will maintain its upward trend or take a brief breather. The previous day, the KOSPI closed up 0.39% at 6,641.02 points, while the KOSDAQ closed down 0.86% at 1,215.58 points, sparking debates over the market's direction.
Sector-specific divergence driven by international geopolitics and industry trends has become prominent. The United Arab Emirates (UAE), which relies heavily on oil exports, decided to withdraw from both OPEC and OPEC+ as of May 1, causing disruptions in crude oil exports. The blockade of the Strait of Hormuz by Iran is cited as a major cause. In contrast, the automotive sector enjoyed a boom following Hyundai Motor Group's unveiling of the new Grandeur design. Hyundai Motor rose 5.92% to 550,000 won, with Hyundai AutoEver, Hyundai Rotem, and Hyundai Mobis also recording concurrent gains. Steel stocks also surged, drawing market attention led by POSCO Holdings and including major stocks such as Munbae Steel and Dahyoo Special Steel, against the backdrop of China's large-scale production cuts and Iran's export ban measures.
Major U.S. indices closed flat, revealing market volatility. The Dow Jones Industrial Average fell 0.05% to 49,141.93 points, the S&P 500 dropped 0.49% to 7,138.80 points, and the Nasdaq Composite declined 0.92% to 24,663.80 points. Specifically, following reports that OpenAI, which announced an IPO plan within the year, failed to meet new user numbers and revenue targets, related companies such as NVIDIA, Broadcom, Oracle, and Micron have shown declines, continuing the correction phase centered on technology stocks.
Future market trends depend on the results of the Fed's meeting on the 29th local time and technology stock earnings. The Fed is set to announce the benchmark interest rate at 3 a.m. KST on the 30th, with the market expecting a rate hold. Given that Chair Jerome Powell's address is considered his last before his term ends, his remarks in the press conference are attracting significant attention. Additionally, the five mega-cap technology companies will release Q1 earnings covering January to March on the 29th and 30th, with the possibility of an earnings surprise or underperformance expected to significantly affect stock price volatility. In Korea, the Bank of Korea's foreign exchange trading trend announcement and the Ministry of SMEs and Startups' 1st quarter export trend announcement are also key points to watch. Meanwhile, the Japanese market is closed for Showa Day. Han Ji-young researcher at Kiwoom Securities warned that volatility may increase in leading sectors like semiconductors and energy until the end of the earnings event, advising investors to also monitor movements in related industries such as fuel cells and power equipment.