[Anchor]

Drops of this magnitude are trends that were historically seen during financial crises or the COVID-19 pandemic. Experts interpret that this time, a complex combination of factors was at play, including the pursuit by Chinese semiconductors, concerns over interest rate hikes, and weakened investment sentiment. All eyes in the market are now turning to the U.S. benchmark interest rate decision and big tech earnings announcements coming up in two days. Whether positive signals regarding semiconductor investments emerge will be the key to a rebound.

Reporter Min Gyeongho has the story.

[Reporter]

The blow that dealt the biggest shock to the stock market today (the 28th) was the news that China has set out to develop DUV equipment.

It is a deep ultraviolet lithography equipment that uses light to draw circuits on silicon wafers, serving as a core facility for semiconductor production.

The technology is practically monopolized by ASML of the Netherlands, and exports to China have been banned since 2019.

This led to concerns that if China succeeds in mass-producing DUV and further emerges as a major supplier in the memory market, the profitability of Samsung Electronics and SK Hynix, which would be driven into competition, would also decline.

With investment sentiment already weakened by repeated sharp fluctuations stemming from theories that semiconductors have peaked, the fear of Chinese semiconductors swept the market as news of the successful listing of Chinese DRAM company ChangXin Memory broke yesterday, followed by news of DUV development today.

[Han Ji-young / Deputy Manager, Investment Strategy Team, Kiwoom Securities: With psychological resilience having been heavily depleted, the stock prices were largely pushed down simply by news like China's development of DUV lithography equipment....]

Given that ChangXin Memory also fell by nearly 4% today, opinions were also raised that what created the overall downward atmosphere was interest rates.

The sentiment is spreading, questioning whether U.S. big tech companies, which purchase semiconductors by taking on debt, can continue to spend money in an environment of rising interest rates.

[Lee Sang-heon / Chief Research Fellow, Research Center, iM Securities: (For semiconductor-related investments), they have no choice but to continue issuing bonds. What do they demand more from heavily indebted big tech companies? They demand more interest expenses, even more so. When Meta tried to (issue bonds) a few days ago, it was demanded 7%.]

While general opinions lean toward today's drop being excessive despite market concerns, what needs to be watched first is the U.S. benchmark interest rate to be decided at dawn the day after tomorrow.

Even if rates are frozen, it is important whether signals strongly hinting at the possibility of future hikes will emerge.

Additionally, experts say that in earnings announcements by SK Hynix, Samsung Electronics, Microsoft, Meta, and others starting tomorrow, hints regarding future investments and demand rather than quarterly earnings will determine the direction of the market.

(Photo: Yonhap News) (Video Reported by Lee Byung-joo, Lee Moo-jin | Video Edited by Park Ji-in)