The KOSPI index failed to hold the 5,700 line and slipped below the 5,600 mark. This is interpreted as the result of weakened investor sentiment centered on tech stocks, as concerns over the profitability of AI investments persisted despite the release of earnings from major U.S. tech companies overnight.
As of 9:24 a.m. on Tuesday, the KOSPI stood at 5,673.65, down 185.43 points (3.16%) from the previous trading session. The index opened at 5,715.19, down 143.89 points (2.46%), holding above the 5,700 line initially, but the decline widened shortly thereafter, with trading taking place in the 5,600 range.
In New York overnight, international oil prices (WTI) plunged by over 7% as a peace agreement between the U.S. and Iran gained momentum, but selling pressure emerged centered on tech stocks amid rising concerns over AI investment profitability.
On Monday (local time), the S&P 500 index closed at 7,541.40, down 38.67 points (0.51%) from the previous close, while the NASDAQ Composite Index ended trading at 25,164.32, down 272.68 points (1.07%). The Dow Jones Industrial Average closed at 51,983.98, up 213.67 points (0.41%) from the previous close.
The decisive factor was news that Oracle had announced plans to raise a total of $20 billion—$10 billion each through common stock and corporate bonds—to expand its AI infrastructure. Oracle’s share price plunged 8.8%, and semiconductor stocks also fell in tandem, including Micron Technology (-5.80%), AMD (-7.52%), Intel (-8.83%), and Arm (-4.57%).
Han Ji-young, a researcher at Kiwoom Securities, said, “Despite a favorable macro environment characterized by simultaneous declines in oil prices and interest rates driven by expectations for U.S.-Iran negotiations, the market is expected to open lower due to the impact of adjustments in U.S. AI stocks following the resurgence of concerns over AI profitability.”
In the KOSPI market on the 3rd (based on the integrated criteria of Korea Exchange and NextTrade), foreign investors and institutional investors recorded net sales of 521.1 billion won and 331.8 billion won, respectively. Retail investors made net purchases of 901.5 billion won.
Among KOSPI sectors, medical and precision equipment stocks were down by over 5%. Electrical and electronics stocks fell by more than 4%, while manufacturing, machinery and equipment, chemicals, construction, and metals dropped by over 3%. Insurance stocks declined by over 2%.
Financials, securities, distribution, real estate, and transportation equipment and parts fell by more than 1%. Transportation and warehousing, as well as textiles and apparel, were slightly down, while general services, telecommunications, and food and tobacco traded slightly higher. Pharmaceuticals rose by over 1%.
Among top KOSPI market capitalization stocks, Samsung Electronics, Samsung Electro-Mechanics, and Samsung Life Insurance fell by more than 4%. SK Hynix and SK Square were down by over 5%. Hyundai Motor and Samsung C&T declined by over 1%. Among the top 10 stocks by market cap, Samsung Biologics Co. was the only one showing a gain of over 3%.
The KOSDAQ index stood at 716.73, down 17.63 points (2.40%) from the previous trading session.
In the KOSDAQ market, foreign investors and institutional investors recorded net sales of 71.8 billion won and 42.9 billion won, respectively. Retail investors made net purchases of 125.3 billion won.
Among KOSDAQ sectors, machinery and equipment stocks fell by over 5%. Non-metals dropped by more than 4%, while electrical and electronics, manufacturing, and medical and precision equipment declined by over 3%.
Metals, transportation equipment and parts, chemicals, and distribution fell by more than 2%. Financials, pharmaceuticals, and construction were down by over 1%. Entertainment and culture, as well as IT (information and communications) services, were slightly down. Telecommunications traded slightly higher. Publishing, media, and duplication rose by over 1%.
All 16 top KOSDAQ market capitalization stocks fell across the board. IO Technology dropped by over 7%, while Jusung Engineering and Wonik IPS plunged by over 6%. Ecopro, Rainbow Robotics, HLB, and Simtech declined by over 2%. Alteogen traded slightly lower.
In the Seoul foreign exchange market at 9 a.m. on the 3rd, the won/dollar exchange rate was trading at 1,345.7 won, down 0.3 won from the previous session’s closing price.
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