Emerging from a two-day rout that triggered circuit breakers, both the KOSPI and KOSDAQ turned upward on the morning of the 30th. However, whether the rebound will lead to trend stabilization remains uncertain, as it comes right after the U.S. Federal Reserve (Fed) announced its fifth consecutive benchmark rate hold the previous day while sending a hawkish signal with an unusually large increase in dissenting votes for a hike.

Both Indices Turn Positive in Tandem... Foreigners and Institutions Net Buyers

As of the morning of the 30th, the KOSPI is trading at 5,669.96, up 6.72 points (0.12%) from the previous day, while the KOSDAQ Composite Index is trading at 669.93, up 7.25 points (1.09%). Trading volume so far today stands at approximately 3.9274 trillion won for the KOSPI and 563.8 billion won for the KOSDAQ.

In the KOSPI market, foreigners net purchased 213.4 billion won and institutions net purchased 164.3 billion won, while individuals net sold 389.9 billion won. Foreigners and institutions absorbed the sell-off from individuals, lifting the indices. The number of advancing stocks far exceeded declining ones, with 691 gainers versus 161 losers on the KOSPI and 1,148 gainers versus 446 losers on the KOSDAQ, indicating that the rebound was not limited to specific large-cap stocks but spread across the broader market.

Single-Stock Leverage Products Identified as Epicenter of the Plunge

As single-stock leverage products based on underlying assets such as Samsung Electronics and SK Hynix were identified as the epicenter of the recent surge in volatility, even calls for the resignation of financial authorities emerged within the National Assembly's Financial Affairs Committee. Starting from the 31st, the basic deposit requirement for these types of products will be uniformly raised to 30 million won and they will no longer be accepted as collateral, so supply and demand changes after implementation will need to be closely monitored.

Fed Holds for Fifth Consecutive Time... Three Dissents for a Hike Is a First Since 2016

Another key variable for the market is the Fed's interest rate decision. On the 29th (local time), following the conclusion of its regular FOMC meeting, the Fed announced it would maintain the benchmark rate at an annual 3.50–3.75%. This marks the fifth consecutive hold this year and the second hold decision since Chairman Kevin Wash took office.

In the vote, three regional Federal Reserve Bank presidents cast dissenting votes, arguing that the benchmark rate should be raised by 0.25 percentage points. This is the first time since 2016 that three dissenting opinions have favored a rate hike. With the Bank of Korea having already raised its benchmark rate from 2.50% to 2.75% on the 16th, this hold maintained the Korea-U.S. interest rate differential at 1.00 percentage point based on the upper end of the U.S. rate.

Cautious View Needed on Whether Rebound Will Persist

It has not yet been confirmed whether this rebound is a technical correction following the two-day plunge or will lead to trend stabilization. What impact the Fed's hawkish hold stance will have on the market heading into the September meeting, and whether discussions on the parliamentary investigation and special prosecutor inquiry previewed by the National Assembly's Financial Affairs Committee will progress, also remain key variables.

[This article was written with the assistance of AI. This article is informational material for investment reference based on publicly available market data and does not recommend the purchase or sale of any specific stock. Investment decisions and their consequences are the sole responsibility of the investor. This publication bears no legal or financial responsibility.]