[Good Morning Stock Market] U.S. Stocks Fall Amid AI Uncertainty... South Korea Also Expected to Open Lower

Macro headwinds include CPI topping consensus
"Key question is whether the KOSPI can hold its previous low"

U.S. stocks closed lower amid rising uncertainty surrounding artificial intelligence (AI). South Korea's stock market is also expected to open lower amid a sharp sell-off in AI infrastructure stocks, before paring its losses.

On October 14 (local time), the Dow Jones Industrial Average closed at 51,621.48, down 48.62 points (0.09%) from the previous trading day. The S&P 500, which is weighted toward large-cap stocks, fell 86.51 points (1.11%) to 7,718.94, while the Nasdaq Composite, which is weighted toward technology stocks, dropped 511.51 points (1.88%) to 26,692.87.

U.S. stocks closed lower as selling pressure intensified across the AI value chain. Factors included September's consumer price index (CPI) exceeding market expectations, a renewed focus on AI credit risks after a sharp rise in CoreWeave's corporate bond yields, and concerns over weakening returns on AI investments sparked by a report from a market research firm. Micron (-4.1%), Nvidia (-3.2%) and Meta (-3.3%) were among the notable decliners.

Employees work in the dealing room at Hana Bank's headquarters in Jung-gu, Seoul, on Oct. 13, as the KOSPI extended its decline for a fifth consecutive trading day. The index plunged more than 5% at one point during the session, triggering a sell-sidecar for the first time in 55 days, since Aug. 19 this year. Oct. 13, 2026. Photo by Kim Hyunmin

September's CPI came in above expectations, heightening concerns that inflation could accelerate again. Market research firm Gartner also warned that returns on AI investments would be lower than expected, fueling further selling. "Ultimately, the market's criteria for evaluating the AI investment cycle are shifting away from the scale of capital expenditure (CAPEX) expansion toward the profitability of invested capital and the stability of financing," said Han Ji-young, a researcher at Kiwoom Securities.

South Korea's stock market is expected to open lower amid macroeconomic headwinds, including the CPI reading, and the sharp sell-off in AI infrastructure stocks. However, technical buying could emerge after seven consecutive trading days of sharp declines, and the market could pare its losses following TSMC's earnings announcement, scheduled for later in the session, analysts said.

Han said that, in the short term, foreign investor flows are likely to remain challenging, making it crucial to see whether the KOSPI, including semiconductor stocks, can hold above its previous low. "While the focus at this point should be on establishing downside resilience near the previous low, we should also allow for the possibility of increased volatility as additional selling and bargain hunting compete in the market while that level is tested," Han added.

This content was produced with the assistance of AI translation services.