Stocks dip sharply lower as AI leaders call for industry slow down
The benchmark KOSPI is displayed at a dealing room of Hana Bank in Seoul, Tuesday. Yonhap
Seoul stocks opened sharply lower Tuesday as investors sold off tech heavyweights following calls from artificial intelligence (AI) leaders that the AI industry should slow down.
The benchmark Korea Composite Stock Price Index (KOSPI) was down 34.69 points, or 0.52 percent, to 6,649.68 as of 9:16 a.m.
Overnight, stocks in the United States closed lower on a slump in tech stocks, as investors reacted to comments from AI executives that the industry should proceed more cautiously in developing AI to guard against potential risks.
The S&P 500 shed 0.48 percent, and the tech-heavy Nasdaq dipped 0.56 percent.
Rising U.S. bond yields further dampened investor sentiment. The return on benchmark 10-year Treasurys reached a critical threshold of 5 percent, a level briefly touched in October of 2023.
Investors are closely following the upcoming rate decision from the U.S. Federal Reserve, set to hold its policy meeting this week.
In Seoul, market heavyweights were trading mixed.
Top-cap Samsung Electronics was flat while rival SK hynix inched up 0.24 percent.
Battery maker LG Energy Solution slipped 0.71 percent, carmaker Hyundai Motor retreated 0.67 percent, and financial firm KB financial shed 1.1 percent.
The Korean won was trading at 1,347.5 won against the U.S. dollar as of 9:16 a.m., down 1.3 won from the close of the previous stock trading session.