The KOSPI index fell below the 2,600 mark from the early part of the trading session on the 28th. The KOSDAQ index also showed weakness of about 1%. It appears to be influenced by a steep drop in semiconductor stocks, including NVIDIA, amid U.S. President Donald Trump reigniting the "tariff war."
The KOSPI index stood at 2,583.76 at 9:01 a.m. on that day, down 37.99 points (1.45%) from the previous day. The KOSPI index falling below 2,600 during the trading session is the first time in nine trading days since the 17th.
All of the top 10 stocks by market capitalization in the KOSPI market are showing a downward trend. In particular, the underperformance of the two major semiconductor stocks, Samsung Electronics and SK hynix, has been pronounced.
At the same time, the KOSDAQ index recorded a drop of 10.97 points (1.42%) to 759.88. In the KOSDAQ market, all of the top 10 stocks by market capitalization, including the leading stock Alteogen, are trading at lower prices than the previous day.
The effects of the sluggish U.S. New York stock market overnight are seen as a burden on the domestic market. On the 27th (local time), the Dow Jones Industrial Average fell by 0.45% (193.62 points) on the New York Stock Exchange (NYSE) compared to the previous day. The Standard & Poor's 500 Index, which focuses on large-cap stocks, and the Nasdaq, which focuses on technology stocks, fell by 1.59% (94.49 points) and 2.78% (530.84 points), respectively. The Philadelphia Semiconductor Index, which reflects the stock prices of semiconductor-related stocks, plummeted by 6.09% (304.07 points).
NVIDIA's weakness has been pronounced. NVIDIA shares ended trading down 8.48% ($11.13) at $120.15 in a single day. Although NVIDIA's earnings report released the previous day exceeded market expectations, it appears that concerns about slowed growth due to increased competition weighed heavily on investors. The year-over-year revenue growth rate for NVIDIA dropped from a peak of 265% in the fourth quarter of fiscal year 2024 (October 2023 to January 2024) to 78% in the fourth quarter of fiscal year 2025 (October 2024 to January 2025).
President Trump noted that the issue of synthetic drug inflow has not improved and that he decided to impose a 25% tariff on Canada and Mexico starting March 4 as scheduled, which also dampened investor sentiment. Trump also announced an additional 10% tariff on China. In particular, Trump's confusion regarding the timing for imposing tariffs on Canada and Mexico, stating it would be April 2 only to reverse the statement the next day, has further increased market turmoil.
Research Institute Jo Yeon-joo at NH Investment & Securities said, "The U.S. economic indicators released this week have been sluggish, and the realization of Trump's tariff policy has stimulated fear among investors," noting that "valuation burden led to profit-taking in key stocks."