Today's Stock Market Core Briefing — 2026-11-02

Key Market Issues Today

1. Fallout from U.S. Semiconductor Plunge and Kospi Resilience Last night in the U.S. market, Intel's stock crashed about 29% in a single day, sparking doubts over AI investment profitability. As a result, the Kospi opened 1.6% lower this morning, but successfully rebounded during the session as bargain hunting flowed in. Some analysts suggest market concerns are excessive, noting that there are no fundamental changes to semiconductor profitability.

2. Massive Target Price Downgrades by Brokerages Amid October Bear Market Amid the bear market in October where the Kospi dropped over 16%, securities firms continued to slash their target prices. Notably, target price cuts for three major automotive companies—Hyundai Motor, Kia, and Hyundai Mobis—reached a total of 69 cases, with significant reductions also seen in shipbuilding and semiconductor stocks.

3. Waiting for November External Variables: U.S. Midterm Elections and Employment Data This week (Nov 2–6), the domestic stock market is expected to be influenced by external variables such as the U.S. midterm elections and the release of manufacturing and employment indicators. Brokerage houses judge that the Kospi has entered an undervalued territory and expect trading volume to flow in once uncertainties ease.

Surging Themes and Featured Stocks Analysis

1. Shipbuilding, Construction, and Semiconductor Themes (Export and Order Growth) Propelled by the triple-strength of "exports, orders, and infrastructure," shipbuilding, construction, and semiconductor themes trended upward. Major shipbuilding stocks such as HD Hyundai Heavy Industries, HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries drew attention fueled by order expectations.

2. Large-Cap Semiconductor Stocks (Samsung Electronics, SK Hynix) Despite the sharp decline in U.S. semiconductor stocks, Samsung Electronics and SK Hynix defended the index amid volatile trading thanks to incoming bargain hunting. Their stock price movements under foreign selling pressure, coupled with the assessment that fundamental concerns are limited, serve as a crucial checkpoint.

3. Automotive Sector (Hyundai Motor, Kia, Hyundai Mobis) Facing downward pressure with brokerages cutting target prices a total of 69 times, attention is focused on whether the sector will attempt to bottom out as valuation burdens relative to earnings ease.

4. Financial ETFs and Leverage Products Reflecting increased market volatility, trading volume for index-tracking ETFs such as KODEX 200 (+1.49%) and KODEX Leverage (+3.03%) increased, capturing short-term trading demand.

Macro Context

1. Shrinking Global AI Investment Sentiment Investor sentiment across global tech stocks contracted as the Nasdaq recorded its worst monthly performance since 2025, driven by Intel's lackluster earnings guidance and AI spending concerns at Amazon and Alphabet. This has had a direct negative impact on domestic semiconductor and IT service sectors.

2. November Rebound Expectations and Liquidity Outlook According to a Korea Economic Daily report, forecasts suggest that the resolution of policy uncertainties following the U.S. midterm elections on November 3 and the absorption of additional stock and bond issuances by AI companies could serve as a catalyst for a rebound. If anxiety in the credit and stock markets escalates, the possibility of liquidity support from the U.S. Federal Reserve or the Treasury is also being discussed.

3. Exchange Rate and Interest Rate Trends Ahead of the U.S. midterm elections and employment data releases, upward pressure on the dollar and interest rate volatility persist, creating a macro environment that could influence the inflow and outflow of foreign capital.

This report is based solely on researched data, and investment responsibility rests with the individual.