📅 Week of May 19–23, 2025: Comprehensive Summary of Key Economic and Stock Market News in Korea and the U.S.
Hello investors!
This week, from May 19 to 23, 2025, features important events and issues that could significantly impact the global economy and stock markets. Here is a detailed summary to help guide your investment strategy.
🇺🇸 Key U.S. Issues and Events
1. Easing of US-China Trade Tensions and Market Rally
The U.S. and China agreed to a 90-day tariff truce, boosting investor sentiment. The S&P 500 rose for five consecutive days, gaining 5.3% for the week, while the Nasdaq climbed about 7%. (businessinsider.com)
2. Signs of Inflation Cooling
The April Consumer Price Index (CPI) showed a 2.3% year-over-year increase, the lowest since 2021. Producer Price Index (PPI) declined by 0.5%, marking the largest drop since 2009. (businessinsider.com)
3. Fed’s Review of Monetary Policy Framework
Fed Chair Jerome Powell announced a review of the monetary policy strategy, raising expectations for potential interest rate cuts in the future. (federalreserve.gov)
4. Major Corporate Earnings Reports
- May 20 (Mon): Walmart, Deere
- May 21 (Tue): Target, Home Depot
These earnings reports will provide insights into consumer spending and the retail sector’s health. (wsj.com)
5. Housing Market Data Release
New home sales data will be released on May 23 (Thu), offering a key indicator of the housing market's condition.
🇰🇷 Key Korean Issues and Events
1. KOSPI and KOSDAQ Index Movements
KOSPI closed at 2,626.87, up 0.21% from the previous week, while KOSDAQ fell 1.11% to 725.07. These movements reflect the influence of global market trends and domestic earnings reports.
2. KRW/USD Exchange Rate Decline
The Korean won strengthened to 1,389.60 KRW/USD, down 8.4 won from last week, influenced by U.S. rate cut expectations and easing trade tensions.
3. Major Corporate Earnings Announcements
- May 20 (Mon): Samsung Electronics, SK Hynix
- May 21 (Tue): LG Electronics, Hyundai Motor
These results will play a crucial role in shaping the Korean stock market’s direction.
4. Economic Indicator Releases
- May 22 (Wed): April Producer Price Index (PPI)
- May 23 (Thu): Consumer Sentiment Index for MayThese data points will help evaluate the current state of the Korean economy.
🔮 Outlook and Investment Strategy
United States:
The easing of trade tensions and cooling inflation have raised expectations for Fed rate cuts. This environment favors continued gains in technology-focused Nasdaq stocks.
Korea:
Supported by global market gains and corporate earnings, the KOSPI is expected to maintain upward momentum, while the KOSDAQ may experience volatility requiring caution.
Investment Recommendations:
- U.S.: Consider increasing exposure to technology and consumer sectors.
- Korea: Focus on large-cap stocks and selectively adjust portfolios based on earnings outcomes.
🏁 Closing Remarks
This week is packed with important data releases and earnings reports that could steer market sentiment in new directions. Investors are advised to carefully monitor these developments and adjust their strategies accordingly. Wishing you successful and informed investments!