U.S. markets experienced significant volatility following President Donald Trump’s address to the nation.
Amid the absence of any comments on a potential ceasefire, both the KOSPI and KOSDAQ indices ultimately turned negative.
As of 10:25 a.m. on April 2, the KOSPI index stood at 5,383.91, down 94.79 points or 1.73% from the previous day’s close.
The KOSDAQ also retreated, falling 21.77 points or 1.95% to 1,094.41.
In the wake of Trump’s approximately 18-minute speech, both indices extended their losses.
Market analysts attribute the increased disappointment to the lack of any mention of peace talks with Iran.
The KOSPI initially declined as President Trump began criticizing Iran, but then later rebounded by about 1%, highlighting the heightened market volatility.
Rapid shifts in supply and demand caused the KOSPI to fluctuate between losses, gains, and neutral territory.
The KOSDAQ fell more than 1.5% immediately following the speech, briefly recovered, but then resumed its downward trajectory.
Ahead of the market open, Ji Young Han, an analyst at Kiwoom Securities, predicted that following Trump’s address, market volatility would likely increase as investors closely monitor oil price movements and U.S. futures market trends.
Han cautioned that reacting hastily to minute-by-minute or tick-by-tick price movements after 10 a.m. could lead to errors, adding that a more prudent approach would be to maintain existing positions in market-leading stocks while responding in a measured manner.