[Special Stock] November FOMC 'Hawkish'... Samsung Electronics and SK Hynix Fall Over 2%

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] Major semiconductor stocks are down by around 2%. This is due to the interpretation that, despite the U.S. Federal Reserve (Fed) hinting at a slowdown in the pace of rate hikes at the Federal Open Market Committee (FOMC) meeting, the overall tone was hawkish. It is explained that semiconductor investment sentiment has also weakened as the final interest rate level is expected to be higher than anticipated.

On the morning of the 3rd, Samsung Electronics is trading at 58,400 KRW, down 2.18% (1,300 KRW) from the previous day. SK Hynix is at 82,200 KRW, down 2.72% (2,300 KRW).

Federal Reserve Chair Jerome Powell's remarks that the ultimate interest rate level will be higher than expected are interpreted to have influenced stock prices. On the same day, the Philadelphia Semiconductor Index plunged 3.09%. AMD and NVIDIA rose together due to growth expectations for next year, but after the Fed's remarks, they closed down at -1.73% and -2.39%, respectively. The market evaluates that semiconductor stocks turned downward due to the Fed's hawkish (preference for monetary tightening) comments.

Seo Sang-young, head of Mirae Asset Securities, analyzed, "Chairman Powell's statement that the final interest rate level will be higher than the September forecast will put pressure on foreign demand and supply," adding, "The presence of volatility factors such as employment reports and consumer price index results is also a burden."

This content was produced with the assistance of AI translation services.