US Market Analysis and Korean Market Daily Briefing — 2026-10-13

US Stock Market Review (Previous Day)

Major US indices closed mixed on October 12 (local time). While the Dow Jones Industrial Average finished higher, the Nasdaq and S&P 500 declined, reflecting a tech-led correction.

• Semiconductor Sector Plunge: Reports that China's ChangXin Memory Technologies (CXMT) has developed next-generation memory chip architecture triggered sell-offs across US semiconductor manufacturers, including Micron Technology (MU) and SanDisk. This sparked concerns that investment enthusiasm for AI-related stocks is cooling.
• Middle East Geopolitical Risks: Attacks in the Middle East drove up crude oil prices, raising concerns about a resurgence of inflation and increasing uncertainty surrounding the Federal Reserve's rate path.
• Key Events Next Week: Major banks begin reporting earnings this week, and upcoming inflation data (such as the CPI) are expected to serve as key variables determining the market's direction.

Key Korean Market Themes and Issues

The Korean stock market is facing severe downward pressure today due to a combination of negative news from the US and concerns over foreign capital outflow.

1. KOSPI Plummets Over 5% and Sidecar Triggered Shortly after the open today, the KOSPI index dropped more than 5%, extending its losing streak to five consecutive sessions. The index threatened to break the 6,000 mark during the session, and the 50th sidecar of the year (26th on the sell side) was triggered. This occurred because KOSPI 200 futures prices fell by 5% or more from the previous close and sustained that drop for one minute.

2. Foreign Capital Outflow and Plunging Trading Volume As AI investment enthusiasm cools, massive foreign capital is flowing out of the Korean stock market. Combined with a decrease in trading value and the conclusion of corporate share buybacks, concerns over a liquidity crunch are growing.

3. Supply-Demand Instability in the Semiconductor Sector Leading semiconductor stocks like Samsung Electronics and SK Hynix are faltering, driving the index downward. News of China catching up in memory technology has severely worsened investor sentiment.

Stocks to Watch Today

While a defensive approach is necessary during the current plummeting market, the following stocks are at the center of market volatility and are likely to attract heavy trading focused on potential rebounds.

• Samsung Electronics (005930): The primary culprit behind today's sidecar trigger and the core reason for the KOSPI's decline. Attention should be paid to whether bargain-hunting inflows will occur following the panic selling driven by concerns over China's memory technology catch-up.

• SK Hynix (000660): Despite having a high proportion of high-value-added products like HBM, it is undergoing a steep correction alongside the broader weakness in the global semiconductor sector. Monitoring Micron's trends in the US is essential for managing volatility.

• Energy Sector (S-Oil, etc.): With energy stocks showing strength in the US market due to rising crude oil prices, domestic refiners and energy-related stocks may show relative outperformance.

• Important: This briefing is for reference purposes only, and investors bear full responsibility for their own investment decisions.