FX.co ★ KOSPI Retreats on Fed Caution, Consumer Outlook Dip

On Wednesday, the KOSPI index fell by 0.77% to approximately 3,459, pulling back from its recent upward trend. This decline followed comments from US Federal Reserve Chair Jerome Powell, who remarked that stock prices are "fairly highly valued." Powell's cautious stance on monetary policy dampened investor sentiment, as he highlighted the risks associated with both sides of the Federal Reserve’s mandate. He cautioned that reducing rates too swiftly might rekindle inflation, whereas a slow approach could lead to increased unemployment, leaving the timing of the next rate cut uncertain. Domestically, sentiment took another hit, as South Korea's consumer confidence experienced its first drop in six months. The composite consumer sentiment index decreased to 110.1 in September, a decline of 1.3 points from August, amid worries over a potential export slowdown caused by new US tariffs. Among major stocks, LG Energy Solution fell by 1.12% and SK Hynix by 1.04%, while Samsung Electronics remained steady at the opening.