This week's inflation indicators expected to crucially impact U.S. Treasury yields... Interest focused on corporate earnings and AI investment-related stocks.
These images contained claims that he was greater than historical figures like George Washington and Abraham Lincoln.
Additionally, the images included unverified content about making hundreds of billions of dollars from U.S. assets and depictions of the Strait of Hormuz as U.S. territory, sparking controversy.
Esmail Baghaei, spokesperson for the Iranian Foreign Ministry, stated in an official position that "dangerous choices have a price," emphasizing that the deployment of South Korean troops would be considered "support for an aggressor."
Iran also conveyed its warning message using AI images, including phrases in Korean.
This marked its highest level since November 2023.
ING warned that if the 10-year Treasury yield surpasses 5%, the attractiveness of risk assets could decrease, and companies' funding burdens could intensify.
U.S. investment-grade corporate bond issuance is projected to reach $215 billion this month, setting a new record for September. This is primarily attributed to the funding needs of large technology companies for AI investments.
Additionally, the U.S. Treasury is scheduled to auction 3-year, 10-year, and 30-year Treasury bonds, highlighting supply-demand imbalance factors due to the expanded supply in the bond market.
The U.S. Department of Labor is scheduled to release the Producer Price Index (PPI) and Consumer Price Index (CPI) consecutively this week. If these inflation indicators exceed expectations, there is a possibility of further increases in Treasury yields.
Conversely, if decelerating inflation and robust demand are confirmed, bond selling is expected to subside, which will be a key variable for future interest rate trends.
JPMorgan advised taking advantage of the recent stock market correction as a buying opportunity. Misalv Matejka, Head of Strategy, cited solid corporate earnings forecasts and a favorable macroeconomic environment as reasons why the stock market rally would continue despite rising bond yields and inflation concerns.
He specifically mentioned that improving corporate earnings forecasts have increased valuation attractiveness, and there's a possibility that non-U.S. equities could outperform U.S. returns.
He also raised the possibility of a weaker dollar and lower bond yields in a Blue Wave scenario.
Hartnett also stressed the importance of remaining vigilant about the risk of an AI bubble collapse and excessive market optimism.
News of OpenAI's new AI model, 'GPT-6 Astra,' injected positive momentum into the semiconductor sector, boosting the domestic stock market. The KOSPI rose 4.6% to 6,995 points, reclaiming the 120-day moving average.
The KOSDAQ also closed up 1% at 822 points, as expectations for AI-related technological advancements positively impacted the market.
Accordingly, they set a KOSPI target of 12,000 points, emphasizing the potential for continued upside.
They forecast that the memory semiconductor supply shortage will continue until next year, maintaining a positive outlook for the Korean semiconductor industry.
Looking at the supply and demand in the domestic stock market, foreign investors net bought approximately 2.5 trillion won, and institutional investors net bought approximately 2.6 trillion won, driving market gains. Buying interest was particularly concentrated in semiconductor and electrical & electronics sectors.
Conversely, individual investors net sold approximately 6.8 trillion won, showing a trend of profit-taking.
Bloom Energy was added to the S&P 500 index over the weekend and is scheduled to be included in the index starting on the 21st.
Along with this, Doosan Fuel Cell's fuel cell supply contract for data centers was highlighted, leading to an upward revision of its target price to 58,000 won.
Philoptics hit the upper limit on this news.
Major domestic companies such as Samsung Electro-Mechanics and SKC are also accelerating the commercialization of glass substrates, increasing expectations for the growth of the related market.
LS Electric is considering expanding its U.S. factory to meet the surge in demand from North American AI data centers. This move is to cope with increasing orders for power equipment.
LS Electric has secured new orders worth 1.2 trillion won in the first half of this year alone, continuing its growth.
Simultaneous growth is expected in both large and small/medium display divisions.
Annual operating profit is projected to jump 90% year-on-year, raising expectations for an earnings turnaround.
This is a record-breaking scale, equivalent to nine times last year's revenue.
This contract is analyzed as part of a strategic shift due to the expansion of the hybrid market, raising future growth expectations.
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