Stock markets attempted a rebound as dip-buying emerged in recently battered artificial intelligence stocks. However, investor sentiment remains cautious amid lingering concerns over data center regulations and the potential for interest rate hikes driven by strong employment data.
Dip-buying emerged in key AI and semiconductor-related stocks that had tumbled the previous day, triggering a technical rebound.
Regulatory concerns spread, including potential halts on new data center construction and related activities, following the Democratic victory in the U.S. midterm elections.
U.S. October nonfarm payrolls surged unexpectedly, raising the likelihood of a Fed rate hike in December and pushing Treasury yields higher.
A sharp plunge in AI-related stocks led Wall Street hedge funds to execute their largest position reduction in over a decade and sell assets to meet margin calls.
Uncertainty surrounding AI infrastructure investment persists as Microsoft moves to reduce its neocloud partners.
Burdens from high interest rates and uncertainty surrounding AI data center investments have weakened short-term investor sentiment, significantly increasing market volatility. However, expanding shareholder return policies, such as large-scale treasury stock cancellations, and solid fundamentals continue to support expectations for a long-term stock market re-rating.
Volatility surges as the KOSPI index plummets 6.02%, triggering an intraday circuit breaker
Nomura Securities maintains its KOSPI target at 10,000 points, citing solid fundamentals and expanding corporate shareholder returns amid oversold conditions
High interest rate environment and the burden of rising U.S. Treasury yields constrain short-term stock market gains
