Tomorrow: Day of the Four Witches → U.S. Producer Price Index… Caution on volatility after seven thousand points

On the 9th, as the KOSPI index recovered to 7,000 for the first time in 33 trading days, the stock market on the 10th will face the Day of the Four Witches, when futures and options on stock indices and individual stock futures and options expire simultaneously. The release of U.S. inflation indicators is also approaching. There are concerns that the index, which rose on expectations for the AI (artificial intelligence) industry, could be swept up in volatility.

The KOSPI index closed at 7,051.64, up 97.12 points (1.40%) from the previous trading day. This is the first time since July 23 (7,096.89) that the closing price has exceeded 7,000, marking a span of 33 trading days. Institutional investors led the upward trend by making net purchases totaling 941.7 billion won. Foreigners and individuals made net sales of 435 billion won and 2.2875 trillion won, respectively.

Despite heightened tensions in the Middle East and a sharp rise in international oil prices, strong performance in semiconductors and secondary battery stocks pulled the index higher. On the 8th (local time), the Dow Jones Industrial Average, the Standard & Poor's (S&P) 500 Index, and the NASDAQ Index all declined on U.S. markets, but semiconductor stocks showed strength. In Korea, SK Hynix rose 3.51%, and LG Energy Solution gained 6.46%.

OpenAI released its new model GPT-6 Astra, reigniting expectations for the AI industry. Expectations that the U.S. government aims to reduce its reliance on Chinese battery technology and supply chains acted as a catalyst for the rise in domestic secondary battery stocks.

The market is focusing on the release of August's Producer Price Index (PPI) in the U.S. on the 10th (local time), along with the announcement of the scale of long-term Treasury bond buybacks scheduled for the same day. On the 11th, the release of the U.S. August Consumer Price Index (CPI) is also approaching.

If U.S. inflation indicators come out higher than expected or if pressure for rising long-term interest rates increases again, it could become a burden on the recently rebounding stock market. Conversely, if interest rate burdens ease, an upward trend centered on growth stocks such as semiconductors may continue.

The Day of the Four Witches scheduled for the domestic stock market on the 10th is also cited as a variable. Market experts advised that during periods when futures and options are nearing expiration, profit-taking volumes due to position adjustments could emerge from the market, so caution is needed regarding short-term volatility.

Im Jeong-eun, a researcher at KB Securities, said, "Institutional investors have continued net purchases of KOSPI for five consecutive trading days, and tomorrow's announcement on the scale of U.S. long-term Treasury bond buybacks and the release of August's Producer Price Index are scheduled." She added, "It is necessary to be cautious about stock market volatility."

The situation in the Middle East and oil prices are also identified as external variables requiring attention. As tensions between the U.S. and Iran have flared up again and international oil prices have approached $100 per barrel, concerns were raised that if oil prices rise further, burdens on both inflation and interest rates could increase simultaneously.