KOSPI opened sharply lower on Thursday amid hotter-than-expected U.S. inflation data and growing doubts surrounding AI. As of 10:13 a.m. Seoul time, the index had dropped by 7.28% to 5,571.27 points. The decline extends a six-session losing streak and leaves the index about 40% below its June 19 peak. However, it is still up 31.87% since the start of 2026, according to TradingView.
U.S. inflation, according to the Bureau of Labor Statistics, reached 3.7% in September against a forecast of 3.6%. Core inflation, excluding food and energy, also exceeded expectations at 2.6%. On Wednesday, U.S. stocks fell: the S&P 500 lost 1.11%, and the Nasdaq Composite dropped 1.88%. According to Korea JoongAng Daily, KOSPI opened down 5.59% at 5,673.01, triggering a program trading halt at 9:08. The sidecar mechanism blocks automatic orders for five minutes and is activated when KOSPI 200 futures fall by 5% and stay at that level for a minute. Samsung Electronics fell by 6.03%, and SK Hynix by 7.61% shortly after the opening. Foreign investors sold a total of 285.6 billion won in early trading. Both chipmakers were already under pressure due to the successes of China's ChangXin Memory Technologies in memory.
The report revived concerns about another Fed rate hike at the October 27–28 meeting. In September, the central bank had already raised rates. Higher rates will increase borrowing costs for companies financing AI data centers with debt. NVIDIA fell by more than 3% on Wednesday. Brent crude is trading around $106 per barrel amid ongoing tensions in the Middle East. Earlier this week, a broader sell-off in Asian stocks had already hit global risk appetite. Thursday's decline shows how one inflation surprise can ripple from Fed expectations to financing costs for AI and Korean chipmakers. The Fed's decision on October 28 will indicate whether this pressure will ease.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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