Investor sentiment cooled rapidly due to doubts over the profitability of massive artificial intelligence (AI) investments relative to their scale, compounded by weak earnings from semiconductor companies. On top of this, surging oil prices fueled by escalating geopolitical tensions in the Middle East intensified risk-off sentiment across global equity markets.
Major semiconductor and tech stocks plunged due to Intel's earnings shock, missed next-quarter guidance, and growing skepticism over the profitability of AI investments by major Big Tech firms.
Geopolitical risks escalated following an attack on a vessel in the Strait of Hormuz and reports of potential U.S. strikes on Iran, driving international crude oil prices up to $113 per barrel.
A $6.3 billion hack at Binance, the world's largest cryptocurrency exchange, triggered a slump in the crypto market and heightened fund margin call risks.
Political and geopolitical uncertainties grew ahead of the U.S. midterm elections due to internal friction within the Democratic Party in Michigan and the possibility of military strikes against Iran.
Credit risk concerns and demand for downside loss protection surged amid expected speculative-grade ratings for AI startup Anthropic and rising CDS premiums for Big Tech firms.
The domestic stock market opened lower as weak earnings from U.S. tech stocks intensified concerns over AI profitability. However, as perceptions of an oversold market spread based on the solid earnings performance of domestic large-cap semiconductor stocks, strong bargain-hunting stepped in, driving the market to reverse upward.
Sharp decline in U.S. tech stocks and the semiconductor sector due to Intel's earnings shock and lowered fourth-quarter guidance
Inflow of bargain-hunting centered on the semiconductor sector driven by oversold market perceptions, leading to an intraday turnaround
Announcement by the Korea Exchange and Korea Securities Depository of a roadmap to shorten the stock settlement cycle to T+1 by 2028
Young Poong and MBK raise breach of trust allegations against Korea Zinc Chairman Choi Yun-beom regarding an indirect investment in Arc Media
