The U.S. stock market is expected to open lower on October 30, following a decline in shares of Alphabet, Google's parent company, due to disappointing earnings and concerns over artificial intelligence (AI) investments. In pre-market trading on NXT, major semiconductor stocks, including Samsung Electronics and SK Hynix, are down more than 5%.
As of 8:13 a.m. on October 30, Samsung Electronics has fallen by 5.17%. SK Hynix is down 5.57%, while Samsung Electro-Mechanics has dropped 5.49%, SK Square is down 4.83%, and LG Energy Solution has decreased by 2.67%. In contrast, Samsung Biologics is up 1.02%.
On October 29, the Dow Jones Industrial Average closed down 132.54 points (0.25%) at 52,342.56. The S&P 500 fell by 23.59 points (0.30%) to finish at 7,720.39, while the tech-heavy Nasdaq Composite dropped 365.13 points (1.38%) to close at 26,184.72.
Alphabet's stock plummeted by 12.64% after the company reported third-quarter revenue and adjusted earnings per share (EPS) that fell short of market expectations, raising concerns about cash depletion due to increased AI investments. Other tech stocks, including Fortinet and ServiceNow, also saw declines of over 20% as selling pressure spread across the sector.
Semiconductor stocks also faced losses, with the Philadelphia Semiconductor Index down 1.42%. Micron fell by 4.98%, and AMD dropped by 2.08%. After the market closed, Intel's disappointing earnings outlook led to a sharp decline in after-hours trading, while Amazon's forecast also fell short of market expectations, dampening investor sentiment.
Domestic market indicators were also weak. The MSCI Korea ETF fell by 2.46% and continued to decline by nearly 2% in after-hours trading. The KOSPI night futures initially rose slightly at the close of the U.S. market but later expanded losses to over 1% following the earnings reports from Intel and Amazon.
In the foreign exchange market, the dollar-won exchange rate in Seoul was recorded at 1,336.80 won, while the one-month non-deliverable forward (NDF) for the dollar-won was trading at 1,338.50 won.
Seo Sang-young, a researcher at Mirae Asset Securities, noted the need to differentiate between concerns over investment returns from U.S. AI companies and the growth potential of domestic semiconductor firms.
Seo stated, "Amazon's AWS revenue increased by 39%, and Microsoft's Azure revenue growth rate reached 48%, indicating that real demand for AI remains robust. The outlook for memory supply shortages also persists."
He added, "Recent volatility in semiconductor stocks is significantly influenced by foreign investor sentiment and changes in investment psychology rather than corporate earnings. Monitoring foreign trading activity in futures and spot markets will be crucial."
* This article has been translated by AI.
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