As U.S. stocks fell across the board over the weekend, the domestic market also opened lower. After the U.S. market closed, "the semiconductor barometer" Micron posted record results. But investor sentiment appears to be weakening as concerns grow that Oracle may not be able to raise enough funds to build data centers.
On the 18th, the KOSPI started trading at 3,989.60, down 66.81 points (1.65%) from the previous session. The early losses narrowed somewhat, but it is still down more than 1%, moving around the 4,000 mark. Foreign investors and institutions are net buyers together, but not at a meaningful level.
Most of the top market-cap stocks are declining. In particular, LG Energy Solution shares are plunging after it said its battery supply contract with Ford worth 10 trillion won was canceled. Samsung Electronics is down slightly, while SK hynix is up slightly.
U.S. stocks fell across the board overnight. Ahead of Micron's earnings, news that an investor who had planned to invest in Oracle's data centers withdrew the decision weighed on tech stocks. According to foreign media, private equity firm Blue Owl Capital and Oracle broke off investment talks. As a result, concerns grew that funding risks for building Oracle's data centers would expand.
Some said companies that sparked the artificial intelligence (AI) boom are struggling to raise funds. Oracle fell more than 5%, and tech stocks such as Nvidia and Broadcom weakened across the board.
However, right after the U.S. market closed, Micron reported its best-ever results. Helped by an improvement in the memory semiconductor cycle, revenue surged, and the company said it expects further revenue growth and margin improvement ahead. Micron, down 3% in regular trading, rebounded and jumped in the after-market.
The KOSDAQ is also weak. The KOSDAQ opened at 899.30, down 11.77 points (1.29%). But as losses narrowed, it recovered the 900 level in the morning. On the shock from LG Energy Solution, secondary battery stocks are weak. EcoPro and EcoPro BM are also falling by a relatively large margin.