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 Stocks Price Index (KOSPI) opened down 25.12 points, or 0.38 percent, to 6,659.25.
According to Yonhap News Agency, 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 SandP 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.
Meanwhile, trade volume at the aftermarket, which newly opened Monday, was 1.87 trillion won (US$1.39 billion), accounting for some 8.03 percent of the trade volume recorded during official trading hours, according to the Korea Exchange.