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美 midterm elections in the results Intraday volatility maximize AI regulation Concerned sudden drop after fall catch up…Semiconductor bearish

main market movement

• ① to Texas flipped over…AI regulation Concerned sudden drop

Domestic stock market USA midterm elections in the results sensitively reacting extreme volatility It seemed. page In the beginning eve USA Semiconductor stocks On a strong note Thanks to you Although it rose election The vote count As it progresses The atmosphere changed suddenly.

recent semiconductor The industry is 10month high point contrast 20% more fell and Nasdaq100do short term The fall 10%cast beyond It was in a state. past midterm elections since stock market strong Even statistics As it adds up In the beginning fall exaggerated recognition was dominant.

however better than expected strong democratic election the result As confirmed AI In related week again alert It spread. especially traditional republican stress local in texas democrats pass Hinojosa candidate pasha in elections victorious It is of the market interest dragged.

Texas is USA data center investor concentrated It's a region. election in the process of data center electrical energy consumption and electricity bill, cleanser boon etc. main As an issue As it rises in the future related policy to be strengthened number There is concern AI Investment sentiment stimulated.

U.S. stock index futures plummeted and the domestic stock market also fell quickly. KOSPI fell about 7% from its intraday high, but has since recovered much of the loss.

• ② Trump 'acceptance and cooperation of results'… Decrease the decline quickly

In the afternoon, the market stabilized again. President Trump's announcement that he would accept the results of the midterm elections and cooperate with the Democratic Party had an impact on the recovery of investment sentiment.

Market attention has also shifted to the possibility that data center regulations will go in the direction of adjusting power consumption, electricity bill burden, and benefits provided to companies rather than restricting the AI ​​industry itself.

As AI data center investment has a significant impact on U.S. growth and regional investment and employment, further confirmation is needed to determine whether regulations will actually lead to a cessation of investment. The perception that the election results themselves are not material that can change the direction of growth of the AI ​​industry also helped reduce the decline.

• ③ Semiconductor weakness, secondary battery reversal… Foreign Investors sell massively

As concerns over data center investment emerged, Samsung Electronics and SK Hynix showed weakness. Secondary battery stocks fell during the day but then turned upward, and renewable energy-related stocks also showed strength.

In KOSDAQ, Alteogen fell significantly, putting pressure on the index. On the other hand, some pharmaceutical stocks such as Hanmi Science and Celltrion rose.

Foreign Investors made large-scale net sales, mainly in electricity, electronics and finance, and net purchases in IT services, transportation warehouses, and electricity and gas. The agency purchased electrical and electronics, finance, transportation equipment, and pharmaceuticals.

Supply and demand and industry

At the center of the volatility on this day was foreign selling. As the U.S. election results were announced, the number of large-cap stocks for sale, including semiconductors, increased rapidly, causing the index to plummet.

On the other hand, institutions played a role in reducing the decline by purchasing in major industries, including electrical and electronics. Even on KOSDAQ, institutions made net purchases of electrical and electronic stocks.

By industry, semiconductors were weak, while secondary batteries, renewable energy, and some pharmaceutical stocks were relatively strong. Differentiation by industry was also seen, reflecting the possibility of policy change following the election results.

Market Insights

Today's market reaction to the U.S. midterm election results was somewhat exaggerated. While the data center power cost and community burden controversies are valid policy considerations, it is essential to distinguish these from any significant slowdown in the AI industry itself.

The core issue in Texas' data center debate revolves around power consumption and electricity rates. There is a possibility of policy adjustments to reduce household costs and increase the burden on data center operators. During the concretization of these policies, volatility in AI stocks may persist, but it is a separate matter whether it will alter the direction of data center investments.

The midterm election results also warrant consideration from another perspective. If political opposition between the White House and Congress intensifies, it could impact the pace of existing policies such as tariffs, fiscal measures, and foreign relations. Given President Trump's acceptance of the election outcome and his willingness to cooperate with the Democrats, we must ascertain the extent of any actual policy changes going forward.

Market Outlook and Key Considerations

In the short term, the market may continue to be sensitive to election results and AI-related news, which could drive volatility. However, it is essential to acknowledge that the significant uncertainty surrounding the election is likely to peak and potentially subside. As market volatility stabilizes, it is crucial to monitor the performance of existing market leaders, stocks with proven track records, and those experiencing continued institutional buying.

Source: Stock Market Story by SiHwangMan t.me/shmstory

YouTube: SiHwangMan TV www.youtube.com/@blueoak1004

This article has been reconstructed with the consent of the author from a post on the Stock Market Story by SiHwangMan Telegram channel. All content may contain errors and should not be construed as buy or sell recommendations. It is not intended to be used as a basis for investment decisions. The content of this post cannot be used as legal grounds under any circumstances.