This week, the stock market is expected to be greatly affected by major events such as the full resu..

This week, the stock market is expected to be greatly affected by major events such as the full resumption of short selling in Korea and the announcement of mutual tariffs in the U.S.

Short selling will resume in the domestic stock market on the 31st for the first time in 17 months. Based on all events, it has been about five years.

Short selling is an investment method that borrows stocks that are expected to fall first, sells them, and when the stock price actually goes down, buys them back and pays them back to earn market profits. The market analyzes that stock prices may undergo short-term adjustments, mainly in stocks that have recently surged, which have a high valuation burden and a sharp increase in the proportion of balance. By industry, shipbuilding, defense, and secondary batteries are considered.

However, some predict that the positive impact will be greater than the negative impact of short selling. Yang Yang-woo, a researcher at Samsung Securities, predicted, “After the resumption of short selling, stocks with strong profit and stock price momentum will continue to strengthen.”

The details of the mutual tariffs will be announced on April 2nd (local time) in the U.S. stock market. On the day when the level, scope, and targets of mutual tariffs are announced, U.S. President Donald Trump also described it as a “liberation day.”

The market expects that the long-term avoidance of risky assets will occur despite the resolution of short-term uncertainties when announcing tariffs. “If tariff uncertainty is resolved to some extent, there may be a temporary relief rally,” said Brett Ryan, chief U.S. economist at Deutsche Bank, but added, “There will be a sell-off because it is negative unless tariffs are lowered in a large framework.”

Meanwhile, the “Boom & Shock Index,” an artificial intelligence (AI)-based stock risk management index jointly developed by Mail Business and Kraft Technologies, recorded zero in the Korean version and 19 in the U.S. version.

If the boom & shock index is 0 to 10, it means reducing the proportion of cash, if it is 11 to 50, it means neutral, and if it is 51 to 100, it means expanding.