Monday

• Stock markets are reacting to several key catalysts this Monday, including new inflation data and retail margin usage trends. • Significant financing deals are highlighting growth in data center infrastructure, including a $3.2bn bond for TeraWulf backed by Google and a $27bn debt package for Meta’s Hyperion project with Blue Owl. • Broadcom is also receiving advisory services for a $35bn chip financing deal, signaling strong momentum in high-tech capital expenditures.

• The Sensex surged by over 960 points and the Nifty climbed more than 1% on Friday, fueled by strong Q1 earnings optimism. • Market gains were primarily driven by increased buying in the banking and IT sectors, reflecting a positive outlook on corporate performance. • Analysts note that domestic institutional investors are currently rotating capital into attractively valued large-cap stocks while booking profits in mid- and small-cap segments.

• The KOSPI index plummeted nearly 9 percent on Monday, falling below the 7,000 mark in a severe "Black Monday" sell-off. • The decline was driven by a rout in semiconductor shares, which overshadowed the U.S. debut of SK hynix's American Depositary Receipts (ADRs). • Market pressure intensified following a UBS recommendation to short SK hynix's Seoul-listed shares and a report from Korea Investment & Securities warning of potential second-quarter earnings misses.

• On July 13, Japanese and South Korean stock markets experienced a "Black Monday" characterized by extreme volatility and sharp declines. • The South Korean KOSPI plunged more than 8%, triggering circuit breakers, while the Nikkei 225 fell nearly 2%. • Major tech firms faced indiscriminate selling, with SK Hynix plummeting 15%, Samsung dropping over 10%, and Kioxia falling more than 12%.

• The KOSPI index plummeted nearly 9% on the 13th, falling below the 7,000 mark in a session dubbed "Another Black Monday." • The crash was primarily driven by a massive sell-off in semiconductor giants Samsung Electronics and SK hynix, with the latter recording its biggest drop in history. • Market volatility is attributed to fears of a semiconductor "peak-out" due to slowing AI investment and escalating geopolitical tensions between the U.S. and Iran.

• National Bank Financial analyst Maxim Sytchev reports a significant divergence in the Industrial Products sector as the market prepares for second-quarter earnings. • Sytchev notes that the "long-AI trade" has heavily boosted construction, machinery, and distribution stocks. • This trend has created a "zero-sum dynamic," where gains in AI-related industrial names have come at the expense of traditional asset-light consulting business models.

• South Korea's benchmark Kospi index plummeted nearly 9% on Monday, marking the steepest market sell-off the country has experienced in several months. • The crash was primarily driven by a sharp retreat in semiconductor shares and heightened investor panic stemming from mounting geopolitical tensions. • This "Black Monday" event highlights the extreme vulnerability of the Korean economy to global chip demand and regional instability.