The Return of the ‘R’ Fear: Global Stock Markets Tumble Amid U.S. Economic Worries
Economic fears originating from the U.S. have resurfaced, causing a significant decline in global stock markets, including Korea’s KOSPI. Notably, Economic fears originating from the U.S. have resurfaced, causing a significant decline in global stock markets, including Korea’s KOSPI. Notably, Nvidia, a leading AI company, saw a sharp drop of over 9% due to concerns over an AI bubble and antitrust investigations by U.S. authorities. After a month, the fear of an economic recession, known as ‘R’ (Recession), has reappeared, leading to turmoil in global stock markets. The U.S. manufacturing index, which had signaled a decline last month, performed worse than expected, contributing to a sharp drop in tech stocks like semiconductors. Additionally, the Bank of Japan's hint at potential interest rate hikes reignited concerns about the unwinding of the 'yen carry trade'—a strategy where investors borrow yen at low interest rates to invest in higher-yielding assets abroad. On the 4t...