DOMINANT ANGLE
Seoul is deciphering the Wall Street slump through the prism of AI: the rise in US yields is first hitting tech stocks, which the South Korean stock market also depends on.
Dominant angle identified — does not reflect unanimity of this country’s media
KEY POINTS
- 01
US inflation reached 3.7% over one year in September, compared to 3.4% in August and 3.6% expected (Korea Times).
- 02
CoreWeave fell by around 15%, Oracle by 7.3%, and Dell by 12%; the Philadelphia semiconductor index declined for a sixth session (Korea Times).
- 03
The KOSPI lost 0.44% to 6,008.81 points on Wednesday, its sixth consecutive decline, after a 5.46% plunge the previous day (Yonhap, Korea Herald).
ANALYSIS
Seoul, October 15, 2026. Seoul's financial scene is closely watching the US market, where American stocks had their worst session since July on Wednesday, October 14. Consumer prices rose 3.7% over the past year in September, compared to 3.4% in August and the 3.6% expected by economists. The S&P 500 fell 1.1% (1.35% according to a second report), the Nasdaq around 2%, and the yield on the 10-year Treasury briefly exceeded 5.32%, compared to less than 5.17% before the release.
The report emphasizes the sensitivity of artificial intelligence values to the cost of money. CoreWeave lost 15 to 15.5% according to reports, Nebius 10%, Oracle 7.3%, Nvidia 3.2%, and AMD 5.7%. Dell fell 12% and Hewlett Packard Enterprise 7.6% after a downgrade by Barclays. The Philadelphia semiconductor index fell nearly 4% for a sixth consecutive session, its longest streak of losses since May 2025.
Operators now see around 35 to 37% chances of a rate hike by the Federal Reserve at its next meeting, compared to 22% the previous day. The Korea Times also links the rise in oil prices, with Brent at $106.06, to the war with Iran.
In Seoul, Wednesday's session had already been marked by nervousness. Yonhap and the Korea Herald note that the KOSPI lost 0.44% to 6,008.81 points, its sixth consecutive decline, after a 5.46% plunge the previous day. The index had gained 2.57% at the start of the session after an interview with John Williams, president of the New York Fed, who saw "no need" for further tightening next year, before erasing all gains following disappointing sales prospects from ASML, a supplier of machines for Samsung Electronics.
Local analysts cited are focusing on investments deemed excessive in AI. "The KOSPI erased all its gains after ASML's report," says Seo Sang-young, of Mirae Asset Securities. SK hynix fell 1.66% to 1.42 million won, Hanmi Semiconductor 5.02%. Foreigners sold a net 1.18 trillion won in stocks, while the won appreciated against the dollar. The articles provided deal with US inflation mainly as a trigger for markets, without addressing the midterm elections.
SOURCES (3)
- YonhapMEDIUM
- Korea TimesMEDIUM
