Stocks open lower as hawkish Fed worries investors

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Stocks open lower as hawkish Fed worries investors

Published: 22 Sep. 2023, 09:54 Updated: 22 Sep. 2023, 09:59

Screens in Hana Bank's trading room in central Seoul show stock and foreign exchange markets close on Thursday. [YONHAP]

Stocks started lower Friday as the hawkish outlook on the U.S. Federal Reserve's monetary policy and strong U.S. employment data continue to dampen investor sentiment.

The benchmark Kospi lost 21.67 points, or 0.86 percent, to 2,493.30 in the first 15 minutes of trading. The bourse last traded below 2,500 on Aug. 18.

All three U.S. stock indexes fell on Thursday as investors' risk appetite dwindled after the Fed hinted it may go for another rate hike later this year after a rate-freeze decision.

Kospi tumbles to hit month-low on Fed's hawkish outlook

The Dow Jones Industrial Average fell 1.08 percent, the tech-heavy Nasdaq Composite dropped 1.82 percent, and the S&P 500 retreated 1.64 percent.

In Seoul, major shares began in the negative train.

Samsung Electronics declined 0.44 percent, and SK hynix lost 1.55 percent.

LG Energy Solution dropped 0.82 percent, and Samsung SDI lost 0.93 percent.

Auto shares also lost ground, with Hyundai Motor slipping 1.25 percent and Kia shedding 0.88 percent.

Posco Holdings lost 1.56 percent, and Posco Future M declined 1.38 percent.

The local currency was trading at 1,340 won against the dollar at 9:15 a.m., up 0.3 won from Thursday's close.

BY SOHN DONG-JOO, YONHAP [[email protected]]