S&P 500, Nasdaq Reach Record Highs on Interest Rate Cut Expectations...Kim Keon-hee Detained [Morning Briefing]

◆ New York Stock Market: Inflation Concerns Ease, Nasdaq Rises on Rate Cut Hopes

The three major New York stock indices rose on the 12th (local time). July's U.S. Consumer Price Index (CPI) inflation rate stayed within expectations, and expectations grew that the Federal Reserve (Fed) would cut its key interest rate in September. The S&P 500 and Nasdaq indices both set new all-time high closing records again. At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (DJIA) closed at 44,458.61, up 483.52 points (1.10%) from the previous session. The S&P 500 rose 72.31 points (1.13%) to close at 6,445.76, and the technology-heavy Nasdaq Composite jumped 296.50 points (1.39%) to finish at 21,681.90.

◆ International Oil Prices Fall on Global Inventory Increase Projections

International oil prices declined on expectations of growing global crude inventories. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude oil for September delivery fell $0.79 (1.24%) to $63.17 per barrel. The previous day, the WTI price had rebounded for the first time in eight sessions, but quickly turned lower again. The U.S. Energy Information Administration (EIA) projected that global inventories would rise rapidly in the fourth quarter and international oil prices would plummet, as the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ alliance of major oil-producing countries accelerated the lifting of production cuts.

◆ Special Prosecutor Team Detains Kim Keon-hee...First Ever Simultaneous Detention of a Former Presidential Couple

The Seoul Central District Court has issued an arrest warrant for Kim Keon-hee, wife of former President Yoon Seok-yeol, at the request of the Special Prosecutor Team led by Min Joong-gi. This marks the first time in history that a former presidential couple has been detained at the same time. Judge Jeong Jae-wook, in charge of warrants, issued the arrest on the afternoon of the 12th, citing concerns about destruction of evidence. Yoon Seok-yeol has been held at the Seoul Detention Center since being detained on charges under a special investigation for insurrection last month.

◆ Special Prosecutor Team Summons Former National Security Advisor Cho Tae-yong for Third Time Today on PFC Chae Case

The Special Prosecutor Team led by Lee Myung-hyun, investigating allegations of external pressure and cover-up in the death of Private First Class Chae, is summoning former National Security Advisor Cho Tae-yong for a third time today over his deep involvement in retrieving case records. Cho is expected to appear at the team's Seocho office at 9:30 a.m. today. He had been questioned previously as a suspect on charges of abuse of authority on June 29 and July 8.

◆ 'Terra Incident': Kwon Do-hyung of Terraform Labs Pleads Guilty to Fraud in U.S.

Kwon Do-hyung, founder of Terraform Labs, has pleaded guilty to fraud charges in the United States in relation to the 2022 issuance of the TerraUSD stablecoin, agreeing to significantly reduce his maximum sentence. On the 11th (local time), Kwon admitted to conspiracy to commit fraud and wire fraud at a hearing at the U.S. District Court for the Southern District of New York. As part of a plea bargain, prosecutors will seek the forfeiture of $19 million (approximately ₩2.63 billion) and other assets from Kwon.

◆ White House Responds to Question on North Korea Troop Deployment at U.S.-Russia Summit: “Only the Two Leaders Know”

The White House has reaffirmed that the U.S.-Russia summit on the 15th will be a bilateral meeting between President Donald Trump and Russian President Vladimir Putin, with no participation from Ukraine. White House Press Secretary Karoline Leavitt stated in a briefing on the 12th that the summit would take place in Anchorage, the largest city in Alaska. Asked about the possibility of North Korea deploying troops for Russia, State Department spokesperson Tammy Bruce replied that “only the two leaders involved in the talks would know exactly how the dialogue will unfold.”

◆ Heavy Rain in Central Areas...Incheon and Northern Gyeonggi to See Over 200mm Over Two Days

On Wednesday the 13th, strong and heavy rain with gusty winds, thunder, and lightning is forecast for central regions. The entire country will be mostly cloudy, with southern regions and Jeju Island experiencing increased cloudiness in the afternoon. Rain will fall intermittently in the south and on Jeju until the afternoon, potentially easing in some places. Over the two days until the 14th, the capital area is forecast to receive 50–150mm of rain, inland and mountainous Gangwon 30–100mm, with Incheon, northern Gyeonggi, and the five West Sea Islands seeing over 200mm, and parts of inland Gangwon more than 150mm. Daytime highs nationwide are forecast to be between 26 and 34℃.

Oh Jung-min, Hankyung.com Reporter blooming@hankyung.com