[Edaily Reporter PARK MIN ] The KOSPI fell in early trading on the 11th, dropping below the 7,000 mark, due to the ripple effects of a weak New York stock market caused by a sharp rise in international oil prices and rising U.S. Treasury yields. This is interpreted as a result of deteriorating investor sentiment in the domestic stock market due to a confluence of external headwinds, including oil prices surpassing $100 per barrel amid escalating military tensions between the U.S. and Iran, and the U.S. 10-year Treasury yield approaching 5%.

According to MP Doctor, as of 9:10 a.m. today, the KOSPI is trading at 6,852.16, down 181.76 points (2.58%) from the previous trading day. The KOSPI opened at 6,802.50, down 3.29%, early in the session but has since shown a slightly mixed trend, rising slightly. By investor type, foreign investors are net sellers of 126.5 billion won, and institutional investors are net sellers of 155.8 billion won, while retail investors are the sole net buyers, purchasing 259.1 billion won.

At the same time, the KOSDAQ Index is also trading at 823.50, down 13.42 points (1.60%) from the previous trading day. In the KOSDAQ market, foreign investors are net sellers by 10.8 billion won and institutional investors by 8.9 billion won, while retail investors are net buyers by 19.5 billion won.

Most of the top-market-cap stocks turned red today, all at once, in the wake of last night’s sharp decline in tech stocks on the New York Stock Exchange. SamsungElectronics(005930)is trading at 259,250 won, down 3.62% from the previous trading day, while SK hynix(000660)is trading at 1,777,000 won, down 4.10%.

HyundaiMotor(005380)Major sector leaders—including LG Energy Solution(373220)(-2.06%), SAMSUNG BIOLOGICS(207940)(-1.64%), Samsung Life Insurance(032830)(-0.70%), and (-2.58%)—are also trading lower across the board. In contrast, KB Financial Group(105560)rose 0.87%, maintaining a slightly positive trend.

Most of the top-market-cap stocks on the KOSDAQ are also down. Alteogen Inc.(196170)is trading at 275,000 won, down 2.35%, while leading secondary battery stocks such as ECOPRO CO., LTD(086520)(-2.99%) and ECOPRO BM CO., LTD.(247540)(-3.88%) are also falling in tandem. WONIK IPS Co.,Ltd.(240810)(-5.13%), LEENO Industrial Inc(058470)(-3.75%), EO Technics Co., Ltd.(039030)(-3.41%), SIMMTECH Co., Ltd.(222800)(-3.06%), and Rainbow Robotics(277810)(-2.23%) are also all down across the board.

By sector, sectors that benefit from rising interest rates and defensive stocks are holding up well. The property and casualty insurance sector rose 2.24%, buoyed by gains in SamsungFire&MarineInsurance (+4.02%) and others. Conversely, technology stocks and sectors facing cost pressures due to surging oil prices fell across the board. The semiconductor and semiconductor equipment sectors dropped 3.85%, while airlines (-2.95%), telecommunications equipment (-2.91%), and non-ferrous metals (-2.83%) are also experiencing corrections.

Overnight on the New York Stock Exchange, the three major indices closed lower for the fourth consecutive day amid inflationary pressures, as West Texas Intermediate (WTI) crude oil surged to around $102 per BARREL and Brent crude to around $107 per BARREL due to the prolonged U.S.-Iran conflict and the crisis over the Red Sea blockade, while the yield on the 10-year U.S. Treasury note exceeded 4.95% during the session.

On the 10th (local time), the Dow Jones Industrial Average closed at 52,064.10 on the New York Stock Exchange, down 0.60% from the previous session. The S&P 500 index fell 0.58% to 7,591.70, while the tech-heavy Nasdaq Composite closed down 0.65% at 26,081.73.

By stock, selling pressure continued, particularly in tech stocks sensitive to rising interest rates, causing semiconductor stocks such as Micron (-4.9%), NVIDIA (-2.26%), and AMD (-3.36%) to underperform. In contrast, Apple, which unveiled its first foldable iPhone priced at $1,999 the previous day, rose 3.56% on the back of positive reviews from Wall Street.

Amid growing concerns about inflation driven by rising oil prices, which have increased the likelihood of interest rate hikes, market analysts predict that the August Consumer Price Index (CPI) inflation rate—to be released on the 11th—will serve as a turning point for the Federal Reserve’s (Fed) decision on the benchmark interest rate.

Han Ji-young, an analyst at KIWOOM Securities, said, “Depending on the August CPI results, short-term volatility could widen again through next week; however, if the figures do not deviate significantly from the consensus, there is a high probability of a pullback in oil prices and interest rates.” She added, “In this case, the 7,000-point level—which previously served as a resistance line—could continue its transition into a support line.”