Korean AI Stock Crashes 30% Below Its IPO Price. Is Wall Street Next?
At a Glance
- Elice Group fell nearly 30% below its IPO price. KOSPI lost nearly 4%.
- Five AI giants may lift combined spending to about $1.2 trillion next year (Goldman Sachs).
- Meta reports Wednesday.
- Oil is climbing again.
- S&P 500 e-minis: +0.1% at 7,742.
One shaky IPO in Seoul has investors asking if giant AI budgets will pay off.
South Korean AI infrastructure firm Elice Group slid nearly 30% below its IPO price on Tuesday. The tech-heavy KOSPI dropped nearly 4%, right before big AI earnings.
Key Details
Meta reports Wednesday. It is one of five AI hyperscalers Goldman Sachs expects to raise combined capital spending to about $1.2 trillion next year. Borrowing costs are rising too. State Street’s Ninghui Liu says investors now wonder if each AI dollar earns more than it costs to finance.
Today, Netflix is expected to show slower third-quarter revenue growth. SpaceX is forecast to post $12.74 billion in quarterly revenue. GM, Hasbro, Halliburton and 3M also report.
US housing starts are seen at 1.305 million for September, up from 1.275 million. Permits may reach 1.395 million, down from 1.403 million.
Market Reaction
Euro Stoxx 50 futures fell 0.63%, DAX futures 0.39% and FTSE futures 0.48%.
Oil is climbing again. It’s unclear whether President Trump will go ahead with a waiver of sanctions on some Russian energy exports, and fresh Middle East violence adds supply risk.
Why It Matters
Pricey oil keeps most major central banks leaning toward tighter policy. Fed officials, including Chair Kevin Warsh, sound in no hurry to hike again.
What to Watch
Meta on Wednesday, plus speeches from ECB’s Martin Kocher and Olli Rehn and BoE’s Megan Greene. Also German producer prices, UK jobs data, ZEW surveys, and government debt auctions in Germany and the UK.
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Source: Reuters
