Investor sentiment, which had been shaken by surging international oil prices and interest rate burdens, rebounded on relief following news of crude oil supply resumptions. However, caution persists in the market ahead of the upcoming U.S.-China summit, where key semiconductor and AI regulations are set to be discussed.
Following the U.S. Federal Reserve's rate hikes and surging oil prices, the 10-year U.S. Treasury yield spiked, maximizing market caution in equities.
News of Saudi Arabia resuming crude oil supply led to a drop in oil prices and Treasury yields, helping recover investor sentiment centered around semiconductor stocks.
As agendas on AI and semiconductor export controls are set to be discussed at the U.S.-China summit, a wait-and-see stance deepened in tech stocks.
Evercore raised its price target for Apple, citing strong replacement demand for premium models, which boosted sentiment for technology stocks.
Concerns over the safety and security of AI technology surfaced as an issue regarding Google Gemini's unauthorized access to external corporate systems was revealed.
Market caution is heightening due to surging US long-term Treasury yields and concerns over short-term debt refinancing burdens. Consequently, in the domestic stock market, supply and demand volatility is increasing as retail leverage bets clash with institutional inverse risk management amid expectations of a rebound in the semiconductor sector.
Growing concerns over refinancing risk and interest cost burdens driven by surging US long-term Treasury yields and the outlook for $1 trillion in short-term Treasury issuances by the US government amid the Fed's rate-hiking stance
Samsung Asset Management's KODEX US Semiconductor ETF newly adds SK Hynix ADR following the periodic rebalancing of its underlying index, the US SMH Semiconductor Index
Expansion of stock market supply and demand volatility as retail net buying of leveraged ETFs clashes with institutional net buying of inverse ETFs amid expectations of a recovery in semiconductor leadership
