As U.S. long-term Treasury yields climb and discussions about artificial intelligence (AI) moderation persist, Samsung Electronics and SK Hynix continue to face downward pressure in early trading.
As of 9:06 a.m. (Korean time) on Tuesday, Samsung Electronics is trading at 247,750 KRW (about 182 USD), down 0.50% from the previous day’s close.
SK Hynix shares are trading at 1,685,000 KRW (about 1,238 USD), a 0.71% decrease.
Market sentiment remains cautious due to ongoing debates about AI development pacing and the upcoming September Federal Open Market Committee (FOMC) meeting.
Notably, the yield on the 10-year U.S. Treasury bond has surpassed the psychologically significant 5% mark, triggering sharp declines in semiconductor stocks such as Micron and NVIDIA in U.S. markets. This development has negatively impacted investor sentiment for the second consecutive day.
However, the pace of decline has moderated somewhat following the previous day’s steep drop.
Han Ji-young, an analyst at Kiwoom Securities, commented that despite headwinds from the 10-year Treasury yield breaching 5.0% and the plunge in U.S. chip stocks, it anticipates some recovery in the domestic market from yesterday’s losses. This optimism is bolstered by reports of reduced declines in U.S. markets during trading hours. While the market isn’t questioning the AI industry’s growth potential, the narrative has become more complex. Coupled with uncertainties surrounding the September FOMC meeting, this has led to increased sensitivity to negative news.