Seoul stocks open lower, tracking U.S. declines, AI stock pull-back
Quick Look
- Seoul stocks opened lower Wednesday, with the KOSPI down 1.2% at 8,622.13, tracking overnight declines on Wall Street.
- Investors pulled out of AI-related stocks in the U.S. market and showed caution ahead of the Federal Reserve's policy update.
AI-generated summary
Why It Matters
Seoul stocks opened lower Wednesday, mirroring declines on Wall Street and driven by a pull-back in AI-related stocks. Investors are also cautious ahead of the U.S. Federal Reserve's policy update.
SEOUL, June 17 (Yonhap) -- Seoul stocks opened lower Wednesday, partly driven by investors pulling out of artificial intelligence (AI)-related stocks in the U.S. market.
The benchmark Korea Composite Stock Price Index (KOSPI) opened 104.47 points, or 1.2 percent lower, at 8,622.13.
The index followed declines on Wall Street overnight, where a tech sell-off knocked down the S&P500 by some 0.5 percent and the Nasdaq by 1.15 percent.
Investors were also cautious ahead of the Federal Reserve's policy update due Wednesday (U.S. time) afternoon, with some concerned that the new Fed chair could signal a more hawkish tone in this first meeting.
"Given that overall market conditions are neutral or better, the market is expected to rotate away from semiconductors to other sectors and narrow losses," said Han Ji-young, an analyst from Kiwoom Securities.
Open Questions
- Will the Fed signal a more hawkish tone?
- Will the market rotate away from semiconductors as expected?
