In brief
The KOSPI dropped 0.89% to 5,679.74 as investors reacted to Intel and Amazon’s disappointing quarterly results, echoing similar falls in the U.S. S&P 500 and Nasdaq. Major Korean stocks—including Samsung Electronics and SK Hynix—tore lower, while the currency slipped slightly against the dollar. Market participants are also monitoring U.S. job data and upcoming midterm elections amid a backdrop of ongoing U.S.–Iranian talks.
The KOSPI opened 0.89 percent lower at 5,679.74, down 51 points, on Monday in Seoul, as investors weighed the implications of recent earnings reports from U.S. technology giants. The declines were in part driven by disappointing quarterly results from Intel Corp. and Amazon.com Inc., companies that have heavily invested in artificial‑intelligence developments.
On Wall Street, the benchmark S&P 500 fell 1.82 percent and the tech‑heavy Nasdaq declined 2.86 percent after the two firms reported lower than expected revenue and guidance. The double whammy raised concerns about the sustainability of large‑scale, AI‑inspired spending that has been a key growth driver for many technology and related firms.
In Seoul, the biggest market players reflected the negative sentiment. Samsung Electronics slid 2.89 percent, SK Hynix fell 0.63 percent, LG Energy Solution slipped 0.76 percent, Hyundai Motor fell 0.18 percent, and KB Financial dropped 2.77 percent. The yuan was at 1,335.2 won to the U.S. dollar as of 9:15 a.m., a decline of 0.9 won from the prior close.
Beyond technology earnings, investors were also focused on other headline items. U.S. job reports and the schedule of nationwide midterm elections slated for Tuesday were under scrutiny. Meanwhile, diplomatic activity was in the news, with Iranian negotiators in Doha for a third consecutive day of talks with Qatari mediators to attempt to resolve the U.S.–Iran conflict.
At the heart of the market’s reaction is the broader worry that the current wave of AI investment might not be sustainable. Critics argue that even significant returns from AI initiatives have proven elusive, prompting questions about whether the pace of capital outflows will remain. The KOSPI’s fall mirrors a pattern seen in Asian markets that track U.S. technology indices, where a pause in earnings growth tends to trigger a pullback in tech‑heavy stocks.
