Finance

Korea stocks outlook: KOSPI loses momentum as FOMC, chipmakers and Big Tech earnings in focus

South Korean stocks are expected to seek direction this week as investors watch the U.S. Federal Open Market Committee and earnings from domestic semiconductor firms and U.S. Big Tech. The KOSPI and Kosdaq posted sharp losses as risk aversion rose amid Middle East tensions, higher oil prices and rising U.S. Treasury yields. Analysts said profit forecasts have not deteriorated materially, and chip and AI-related guidance, foreign flows and Fed policy signals will be key drivers.

AI & Enterprise

Moody\'s says unprecedented AI spending threatens credit quality of Amazon, Meta, Alphabet and others

Moody\'s warned that a race among big tech companies to invest in AI infrastructure is worsening free cash flow and increasing balance-sheet strain, threatening credit quality. It said six hyperscalers including Microsoft, Amazon, Alphabet, Meta, Oracle and CoreWeave are under pressure from unprecedented AI spending. Moody\'s forecast capital spending of $785 billion in 2026, rising to about $1 trillion in 2027, and said funding is shifting toward more borrowing and other financing.