'AI Bubble Theory' Triggers Nasdaq Plunge... Transformers and Power Cables Added to Tariff List [Morning Briefing]

◆Caution Over AI Bubble Theory... Nasdaq Down 1.46%

Overnight, the New York stock market closed mixed. In early morning trading at the New York Stock Exchange, the Dow Jones Industrial Average rose by 0.02% from the previous day, while the S&P 500 and Nasdaq indices fell by 0.59% and 1.46%, respectively. Major technology stocks all declined together. In particular, NVIDIA plummeted 3.5%, marking the largest drop in four months. Palantir, an AI-based data analytics company, plunged 9.35%. Local media analyzed that profit-taking concerns over tech stocks and a rush to sell were the main drivers.

◆"50% Tariff on Steel and Aluminum—407 New Derivative Product Categories Added"

The U.S. Department of Commerce announced early this morning that it had added 407 steel and aluminum derivative product categories subject to Section 232 trade expansion law tariffs. It further stated, "As a result, a 50% tariff rate will be applied to these products based on their steel and aluminum content." The Department of Commerce explained that today's measures affect wind turbines and parts/components, mobile cranes, bulldozers, other heavy equipment, railway vehicles, furniture, compressors and pumps, and hundreds of other products. Due to this action, related industries in South Korea, such as refrigerators/freezers, automobile parts, elevators, transformers, tractor parts/engines, wires and cables, are also expected to be affected.

◆Han Duck-soo Interrogated for 16 Hours... Arrest Warrant Under Consideration

The special prosecutor investigating the alleged insurrection conspiracy by former president Yoon Suk-yeol re-interrogated former Prime Minister Han Duck-soo, conducting an overnight session lasting over 16 hours. The special prosecutor believes that, under martial law, Han—as vice chairman of the cabinet and the government's number two—could not avoid involvement. Han has denied accusations of supporting, condoning, or facilitating the insurrection. After indicting former Defense Minister Kim Yong-hyun and former Minister of the Interior and Safety Lee Sang-min, the special prosecutor is expected to request an arrest warrant for Han as a co-conspirator for important roles related to the insurrection.

◆Nationwide Civil Defense Drill at 2 PM Today

Starting at 2 PM for 20 minutes nationwide, a civil defense drill simulating an air raid will be conducted. Upon hearing the air raid siren at 2 PM, citizens should immediately evacuate to the nearest civil defense shelter or underground space. This drill focuses on yielding to emergency vehicles; drivers must activate hazard lights and make way if fire engines or ambulances approach. Obstructing emergency passage during the drill is subject to a fine of up to ₩2,000,000. Hospitals, subways, and trains will operate as usual, and related information can be checked on the Safety Stepping Stone app.

◆Nationwide Heat Index Around 35°C... Showers in Some Areas

Today, Wednesday, is expected to see daytime highs above 30°C, with scattered showers in central regions. According to the Korea Meteorological Administration, the morning lows are forecasted at 22 to 27°C, and the daytime highs at 30 to 35°C. Rain is expected from dawn to afternoon in the capital area and mountainous regions of Gangwon. Anticipated precipitation: 5–10mm for northern Gyeonggi and northern Gangwon inland/mountains; less than 5mm for Seoul, Incheon, southern Gyeonggi, and central/southern Gangwon. Central areas will remain mostly cloudy, while southern regions and Jeju Island will have abundant clouds. Some urban and coastal areas may experience tropical nights.

No Jeong-dong, Hankyung.com Reporter dong2@hankyung.com