U.S.-Iran Tensions Push Treasury Yields Higher; Dismissing Concerns That the AI Growth Story Has Collapsed

It is still too early to say systemic risk has fully materialized, but its impact on the broader market cannot be ignored. Investors are holding back, waiting for geopolitical risks to ease.

This has raised market expectations for the strait's reopening, and if it does reopen, attention is expected to focus on this issue above other geopolitical concerns. Because the strait is a key energy transit route, whether it opens will have a major impact on the global economy.

Experts say the AI sector still has strong growth momentum and view this pullback as a temporary effect of rising Treasury yields driven by war risk. They argue that once yields stabilize, earnings at AI-related companies should accelerate again, so there is no need to overreact to short-term market swings.

Samsung Electronics opened down more than 5%, while SK Hynix showed a steeper drop of around 6.8% to 7%. Samsung Electro-Mechanics fell roughly 6.8% to 8%, and SK Square dropped over 8%, reflecting broad market anxiety. The declines are seen as the result of combined pressures from geopolitical risk and surging Treasury yields.

This analysis shifts attention suddenly to big tech and offers a different interpretation from the existing geopolitical explanation. The view that AI companies' funding methods are affecting market volatility is drawing investors' interest.

However, operating profit fell short of market expectations (consensus), which left a disappointing impression. The sharp sales growth is positive, but profitability appears to have lagged. Investors are focusing on why operating profit undershot consensus despite the revenue increase.

The move aligns with global climate response and stronger ESG management, and it signals the group's commitment to a shift toward clean energy. The higher target is expected to affect the group's overall business structure and investment direction.

News has emerged that Donald Trump is planning a meeting with North Korean leader Kim Jong Un within this year. The timing reportedly being explored is around the November Asia-Pacific Economic Cooperation (APEC) summit. Trump's remarks are often exaggerated, but given past U.S.-North Korea summits, the report has the potential to affect North Korea-related stocks.

The news has not been officially confirmed, but if proven true, it is expected to have a major ripple effect on the domestic defense industry. The deal would likely boost Hanwha Aerospace's share price, but for now, verifying the accuracy of the report is what matters most.

A cautious approach has been recommended toward defense-stock-positive news such as the reported large-scale self-propelled howitzer contract for Hanwha Aerospace. Since the report has not been officially confirmed, the view is that investment decisions should wait until the facts are clearly verified. Rushed investing can magnify the risks created by uncertainty, so accurate information should come first.

Hanwha Aerospace is rebounding by roughly 10% in pre-market trading, so the advice is to approach the stock from the perspective of existing holders rather than new buyers. Given the high volatility expected, it may be a burden for new investors. For current holders, a target price of 140,000 won was presented, with a recommendation to keep watching the situation.

In particular, hopes are growing for additional K2 tank orders in the Middle East. The analysis is that it could be a relatively stable investment compared with Hanwha Aerospace. Hyundai Rotem was presented as a stock worth considering, backed by a stable business base and continued order momentum.

Boston Dynamics' technical staff reportedly visited Korea over the past two months to conduct technical due diligence with major domestic auto parts makers. This is interpreted as a strategy by Hyundai Motor Group to strengthen vertical integration in its robotics business and expand cooperation with domestic sobujang companies. Localizing robot parts is expected to have a positive effect on the wider domestic industrial ecosystem.

This suggests that commercialization and market supply capacity, not just technical prowess, are core competitive factors in the humanoid robot market.