The stock market opened lower. As the situation in the Middle East deteriorated and international oil prices surged, U.S. stocks fell across the board on growing concern about Big Tech's artificial intelligence (AI) investments, weakening investor sentiment.
On the 24th, the KOSPI opened at 7,000.78, down 96.11 points (1.35%) from the previous session. The decline deepened right after the open, pushing the index down to the 6,800 level early in the session. In the main board, foreigners are net sellers while individuals are net buyers.
U.S. stocks fell across the board overnight. Markets were rattled by concern that the United States and Iran could again enter a wartime phase. As geopolitical worries mounted, international oil prices jumped. Brent crude topped $100 a barrel, and markets grew fearful that the spike in oil could reignite inflation worries.
U.S. Government Bonds yields also jumped. The U.S. 10-year yield hit its highest level since Jan. 2025.
The tech-heavy Nasdaq index plunged more than 2% in particular. Alphabet and Tesla, which released earnings, fell sharply. Kim Yoon-jung, a researcher at LS Securities, said, "Alphabet raised its annual capital expenditure guidance, limiting the Philadelphia Semiconductor Index's decline to 0.5%, but both Alphabet and Tesla turned negative in free cash flow," adding, "It is interpreted that financial burdens from AI investments have increased, heightening investor concerns."
Samsung Electronics, SK hynix and SK Square, among other large-cap stocks, are all falling sharply. However, Samsung Biologics(207940), which released better-than-expected results, is jumping.
The KOSDAQ market is also weak. The KOSDAQ index started trading at 777.50, down 12.78 points (1.62%), and is being pushed down to the 760 level early in the session. Biotech is holding up relatively well, but most large-cap names are declining. Alteogen(196170) is up slightly and HLB(028300) is surging.