Major Indexes Test Long-Term Support as Market Weakness Broadens Beyond Tech

• US stocks declined on Tuesday, with the Nasdaq Composite dropping 1.0% to 25,092.01, the S&P 500 sliding 0.63% to 7,311.26, and the Dow Jones falling 0.44% to 51,690.51. • The downturn was triggered by reports of a delayed IPO for OpenAI, which created significant jitters across the tech-heavy market.

• The HinduBusinessLine has launched a contest called "Bandu's Blockbusters" inviting participants to predict the top-performing stock by next Friday. • Users who correctly guess the stock that provides the best return within the specified timeframe can win a prize of ₹2,000.

• BCA Research identifies South Korea as the most "stretched" market in the current global equity rally, noting that the KOSPI benchmark is hovering near record highs. • The rally is highly concentrated in a few large technology stocks, as only a small percentage of KOSPI-listed companies are trading above their 200-day moving average.

• UTI Aggressive Hybrid Fund is implementing a disciplined investment strategy that blends value-based equity selection with quality debt to achieve balanced growth. • The fund utilizes a structured valuation framework tailored to specific sectors, such as using price-to-book for banks, P/E ratios for IT, and EV/EBITDA for commodity businesses.

• Jefferies strategist Chris Wood warns that the current AI investment boom will end when investors realize hyperscalers are failing to generate adequate returns on their massive spending. • Wood argues that the primary risk is not a surplus of chips or supply issues, but rather a systemic concern over capital misallocation.

• India has emerged as the world's fastest-growing major economy and currently ranks as the fourth-largest globally. • Driven by decisive governance and visionary reforms, the nation is projected to reach a GDP of $7.3 trillion by 2030.

• Securities analysts forecast that the KOSPI could surge to a high of 9,500 during the coming week. • This optimistic outlook is driven by upward revisions to second-quarter earnings forecasts and growing expectations for third-quarter results.

• South Korea's KOSPI index experienced a severe crash, plunging nearly 10% in a single session and triggering a trading halt after an 8% drop. • The crash follows a period of rapid growth in Asian markets and is attributed to the high volatility of the global AI chip trade.

• The KOSPI is predicted to potentially rise to 9,500 points next week following a period of market volatility. • This projected growth is attributed to an increase in earnings outlooks for the second quarter and positive trends in the U.S. market.

• The South Korean stock market is experiencing an unprecedented "bipolar" trend in 2026, marking it as the most volatile year in history. • Market instability is highlighted by the KOSPI surpassing volatility levels seen during the global financial crisis, with the "sidecar" trading halt triggered 29 times.

• The government has proposed the "Distressed Asset Management Act, 2026," a draft law designed to formalize a recovery market for bad loans. • The legislation would allow private firms to purchase non-performing loans from banks, seize mortgaged assets, and take over indebted companies.

• Wholesale inventories remained steady with a reported figure of 0.3%, precisely matching the projections set by market analysts. • This stability indicates that wholesalers are maintaining a balanced approach to inventory management amidst a cautious economic environment.