Seoul stocks open sharply lower on AI fears after US midterms
Seoul stocks opened sharply lower Friday, tracking an overnight rout on Wall Street as investors feared a Democratic sweep in Congress could decelerate the data center build-out. The benchmark Korea Composite Stock Price Index (KOSPI) opened down 120.54 points, or 2.24 percent, at 5,263.26. Major U.S. stock indexes tumbled overnight as the midterm election results weighed heavily on U.S. stocks…
Seoul's stock market took a significant tumble on Friday, mirroring a decline on Wall Street the previous night. This was driven by fears that a Democratic victory in the US midterms could slow down the construction of data centers. The Korea Composite Stock Price Index (KOSPI), which serves as the benchmark for the Korean market, dropped 120.54 points, or 2.24 percent, to 5,263.26.
Major US stock indices also saw a sharp decline following the election results. The S&P 500 fell by 4.36 percent, while the tech-focused Nasdaq dropped 5.52 percent. These market movements were largely influenced by concerns over the potential impact on sectors related to artificial intelligence (AI).
The Democratic Party's sweeping electoral win raised further worries about the pace of investments in data centers. Such facilities have faced public opposition, and a slower investment pace could have a negative impact on the sector. Additionally, rising oil prices added to the market's concerns. Iranian forces reported that at least five tankers had been damaged in the Strait of Hormuz, contributing to the increase in oil prices.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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