On the morning of the 30th, Korean time, the New York stock market underwent a sharp correction. Three negative factors converged simultaneously—wariness over AI earnings, a Middle East-driven surge in oil prices, and the Federal Reserve's hawkish rate hold—causing downward pressure to spread beyond large-cap tech stocks to the broader market.

■ New York's Three Major Indices Fall Simultaneously… Russell 2000 Also Declines The Dow Jones Industrial Average closed at 51,594, down 1,152.46 points (2.18%) from the previous day. The S&P 500 finished 112.38 points (1.51%) lower at 7,316, and the Nasdaq Composite closed down 433.97 points (1.74%) at 24,442. The Russell 2000, which is highly sensitive to interest rates, also ended down 47.36 points (1.60%) at 2,906, confirming that the sell-off was not limited to large-cap tech stocks but spread across the broader market.

■ 'Doubts About Peak AI Boom' Shake Semiconductor Stocks The first catalyst to shake the market emerged from the semiconductor sector. SK Hynix reported that its second-quarter operating profit surged 557% year-on-year, but even that figure fell short of market expectations. Although the earnings themselves were not bad, they ignited doubts about whether the AI investment boom has passed its peak. In the aftermath, the KOSPI suffered a steep decline approaching 6% during the session, and American Depositary Receipts (ADRs) of Samsung Electronics and SK Hynix also slipped, dampening investor sentiment toward New York-listed semiconductor and tech stocks. The post-close earnings reports from Microsoft and Meta are seen as a key inflection point to determine whether massive AI capital expenditures are translating into actual profits. Wariness remains particularly high, as the shock from Alphabet's previous capital expenditure guidance has not yet dissipated.

■ Middle East Geopolitical Risk → Oil Price Surge → Direct Link to Inflation Concerns Geopolitical risks emanating from the Middle East added fuel to the fire. News that Iran had resumed surprise attacks against the United States sent international oil prices soaring. Brent crude jumped more than 3%, approaching the $85 per barrel mark. A surge in oil prices is in itself a factor that reignites concerns about inflation.

■ Fed Holds Rates Steady for Fifth Consecutive Time; Market Reads It as 'Hawkish' On the 29th (local time), the FOMC held the benchmark interest rate steady at 3.50–3.75% for the fifth consecutive time. However, the market digested this as a hawkish signal. Not only were the inflation-wary phrases in the statement retained, but Fed Chair Wash also avoided making specific comments about the future rate path, fueling the interpretation that the possibility of additional rate hikes remains open. As a result, long-term Treasury yields soared to their highest levels in nearly 20 years, which, combined with oil-driven inflation concerns, is believed to have amplified the losses in rate-sensitive growth and small-cap stocks.

■ Three Key Variables to Watch Going Forward ① Big Tech Earnings and Capex Plans — As the earnings season progresses from Microsoft and Meta through to Apple, skepticism over the profitability of AI spending could intensify, potentially widening volatility in semiconductor and tech stocks once again. ② Middle East Developments and Oil Price Trends — Depending on how the situation surrounding Iran unfolds, the inflation trajectory itself could shift, affecting both Treasury yields and the stock market. ③ September FOMC Inflation Indicators and Dot Plot — Given that this rate hold was interpreted as hawkish, the intensity of market bets on an additional rate hike within the year could fluctuate significantly depending on upcoming data releases.

[This article is intended for informational purposes only and should be used solely as a reference for investment decisions. Investors are solely responsible for individual stock trading and investment decisions. AI assisted with this article.]