The three major U.S. stock indices closed higher, buoyed by falling Treasury yields and strength in non-tech stocks. Following a more than 7% drop in the domestic market the previous day, a rebound is expected as buying interest returns. Notably, Samsung Electronics and SK Hynix saw gains of over 3% in pre-market trading, raising hopes for a recovery in semiconductor stocks.
On October 15, the Dow Jones Industrial Average rose by 556.21 points (1.08%) to close at 52,177.69. The S&P 500 increased by 25.12 points (0.33%) to finish at 7,744.06, while the Nasdaq Composite gained 20.16 points (0.08%) to end at 26,713.03.
The decline in U.S. Treasury yields supported the stock market's rise, with the yield on the 10-year Treasury note falling to 5.086%, marking its largest single-day drop since August 1. As buying interest shifted to sectors that had been relatively neglected, companies like Nike (up 5.21%), Home Depot (up 4.31%), and Walmart (up 1.46%) performed well.
However, concerns about overheating in AI-related investments and credit risks persisted. Despite strong revenue growth from Anthropic and record earnings from Taiwan's TSMC, worries about the profitability of AI investments continued. The Philadelphia Semiconductor Index dropped as much as 4.39% during the day before closing down 0.88%.
Inflationary pressures also weighed on the market. The U.S. Producer Price Index (PPI) for September rose by 1.3% from the previous month, significantly exceeding market expectations of 0.6%. Earlier, the Consumer Price Index (CPI) also surpassed forecasts, raising concerns about the Federal Reserve's potential for further tightening.
The domestic market is expected to see a rebound as buying interest returns following the previous day's sharp decline. The MSCI Korea ETF fell by as much as 6.33% during the day but reduced its losses to close down 2.26%. KOSPI night futures rose nearly 4%, boosting expectations for a rebound.
In the NXT pre-market on October 16, major large-cap stocks showed strength. As of 8:04 a.m., Samsung Electronics and SK Hynix were both up 3.33%. Other companies, including SK Square (up 4.05%), Samsung Electro-Mechanics (up 5.07%), Hyundai Motor (up 1.05%), and LG (up 1.85%), also saw gains.
Seo Sang-young, a researcher at Mirae Asset Securities, stated, "The Korean market dropped sharply due to concerns over AI investment returns and credit risks, particularly in semiconductors. However, considering the U.S. market's recovery and the nearly 4% rise in KOSPI night futures, a strong rebound is expected at the open."
He added, "While U.S. credit risks are still concentrated in some AI infrastructure companies, TSMC's record earnings and robust AI demand outlook indicate that the semiconductor sector itself has not been damaged. However, TSMC's cautious outlook for consumer semiconductor demand in 2027 and the continued decline of the Philadelphia Semiconductor Index pose challenges for the sustainability of any rebound."
The exchange rate showed a relatively stable trend. In the previous day's Seoul foreign exchange market, the dollar-won exchange rate was recorded at 1,344.60 won, while the one-month dollar-won NDF was reported at 1,340.50 won.
On October 16, at 12:30 p.m. Korean time, a discussion between Federal Reserve Chair Kevin Warsh and International Monetary Fund (IMF) Managing Director Kristalina Georgieva in Bangkok is also seen as a key variable.
Seo noted, "Ahead of the Federal Open Market Committee (FOMC) meeting, direct guidance on monetary policy is expected to be restrained. However, recent high inflation, credit risks in the AI sector, and changes in the financial environment could lead to fluctuations in interest rates and the dollar."
He concluded, "While a strong rebound is anticipated for the domestic market, the extent of the rise will depend on U.S. futures, Treasury yields, the dollar-won exchange rate, and changes in foreign investor sentiment."
* This article has been translated by AI.
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