Seoul stocks open sharply lower on U.S. chip sell-off, Fed remarks
Quick Look
- Seoul stocks opened sharply lower Thursday, with the KOSPI index falling 4.46% to 7,933.1.
- The decline was driven by a sell-off in U.S. semiconductor shares and cautious sentiment following remarks from Federal Reserve Chairman Kevin Warsh regarding inflation and interest rates.
- Investors also monitored U.S.-Iran talks.
AI-generated summary
SEOUL, July 2 (Yonhap) -- Seoul stocks opened sharply lower Thursday as a sell-off of U.S. semiconductor shares weighed on market sentiment, while investors assessed fresh remarks from Federal Reserve Chairman Kevin Warsh.
The benchmark Korea Composite Stocks Price Index (KOSPI) lost 370.31 points, or 4.46 percent, at 7,933.1
U.S. stocks retreated overnight. The S&P 500 slipped 0.2 percent, while the tech-heavy Nasdaq 100 fell 1.5 percent. The Philadelphia Semiconductor Index, a key gauge of chip stocks, tumbled 6.3 percent.
Fed Chair Warsh said inflation expectations and inflation risks have eased in recent weeks, dampening hopes for a July interest rate cut.
Investors also remained cautious over the latest developments in U.S.-Iran talks after the two sides concluded another round of indirect negotiations on Wednesday without any clear signs of progress toward lasting peace.
