Korea-US Earnings, Fed Rate Hike Loom as Markets Prepare for Volatility
Financial markets are bracing for significant volatility this week as major artificial intelligence (AI) companies in Korea and the United States release earnings. The US Federal Reserve's upcoming interest rate decision, which may include a surprise hike, will also influence market sentiment.
The Federal Open Market Committee (FOMC) is set to meet on the 28th-29th, with some analysts predicting a 34% chance of a rate hike and a 65.8% probability that the Fed will freeze the rate at its current level. This uncertainty has contributed to the recent surge in oil prices, with Brent crude futures reaching $100.69 per barrel on the 23rd.
The earnings releases of companies such as Microsoft, Meta, Amazon, and Apple will be closely watched for signs of AI-related expenses and potential revisions to capital expenditure plans. Meanwhile, SK hynix's second-quarter operating profit is expected to exceed 64 trillion won, driven by increased demand for high-bandwidth memory.
The 'semiconductor cycle peak theory' has been gaining traction on Wall Street, with Samsung Electronics and SK hynix's earnings releases set to play a crucial role in shaping market expectations. The companies' performance will provide valuable insights into the global AI demand and the semiconductor industry's prospects.