Although market concerns mounted as U.S. Treasury yields surged to a 24-year high, strong demand for AI infrastructure and solid corporate earnings expectations supported investor sentiment. Diminishing prospects of further Federal Reserve rate hikes and a downturn in international crude oil prices also helped stocks close higher, led by technology shares.
The 10-year U.S. Treasury yield spiked to around 5.34%, its highest level since 2002, but markets flexibly absorbed the shock of rising yields as cooling employment data alleviated concerns over further Fed rate hikes.
Driven by continued robust investment in AI infrastructure and high growth, buying pressure converged on AI tech stocks, sending Nvidia and the Nasdaq index to new record highs.
Brent and WTI crude oil prices fell over 1.8% due to a recovery in crude exports from Middle Eastern producers and a G7 agreement to release strategic oil reserves, somewhat easing energy cost burdens on the market.
PTC shares surged over 33% after France's Schneider Electric agreed to acquire the U.S. industrial software company in a deal valued at more than $22 billion.
The U.S. Services PMI for September reached 54.9, extending economic expansion for a 27th consecutive month, but the prices index rose to its highest since July 2022, signaling persistent inflationary pressure in the services sector.
Governance issues surrounding the controlling shareholder's stake sale at SK Group and controversies over performance inflation among special-listed Kosdaq companies have surfaced simultaneously. Investor sentiment is dampening overall amid persistent concerns regarding corporate governance transparency and disappointment with newly listed firms.
Korea Corporate Governance Forum raises allegations that SK Chairman Chey Tae-won's SK Inc. stake sale was a roundabout transaction to evade the 3% rule under the Commercial Code and stabilize management control.
Concerns over investor harm and declining trust mount as a survey reveals 95% of special-listed Kosdaq companies failed to meet the earnings estimates presented at the time of listing due to exaggerated IPOs.
