KOSPI
Heavy foreign net outflows concentrated in large-cap semiconductor stocks pushed the index toward the 5,500 level, causing extreme supply-demand disruptions including program trading halts.
Headline
Both Korean Indices Plunge Amid US Macro Uncertainties and AI Profitability Concerns
Key Takeaways
- Tech stocks including the Nasdaq retreated as concerns over prolonged high interest rates from higher-than-expected US September CPI clashed with debates over the return on investment in AI infrastructure.
- Intense foreign net selling hit domestic equity markets, triggering sell sidecars and circuit breakers on both the KOSPI and KOSDAQ during the session.
- The KOSPI closed down 7.57% from the previous trading day at 5,554.22, while the KOSDAQ tumbled 7.65% to finish at 760.82.
KOSDAQ
Volatility escalated significantly as cooling sentiment across tech, rechargeable batteries, and materials, parts, and equipment sectors led to a drop of over 8%, triggering circuit breakers.
NASDAQ
Downside pressure mounted due to a confluence of inflation data shocks, rebounding Treasury yields, and worries over funding and margins among AI-related companies.
Today's Watchlist
- Post-market earnings results and forward guidance from major global semiconductor foundries
- Signs of stabilization in heavy foreign net selling across spot and futures, alongside program trading absorption
- Movement in US 10-year Treasury yields and monetary policy commentary from Federal Reserve officials
Risk Note
While a technical rebound may be considered following sharp declines, heightened short-term volatility risks warrant caution as macroeconomic uncertainties and earnings estimate revisions across the global AI value chain remain ongoing.
Last updated: 2026-10-15 16:00:24