U.S.-Iran War and Market Volatility
The escalation of conflict between the U.S. and Iran has significantly increased the volatility of the KORU ETF, a triple-leveraged ETF listed on the New York Stock Exchange tracking the MSCI Korea 25/50 Index. This ETF includes major Korean stocks such as Samsung Electronics and SK Hynix. The ETF plummeted as much as -44.86% due to the major plunge in the market but managed to recover slightly afterwards.
Domestically, the South Korean stock market also faced downward pressure from the U.S.-Iran war and the blockade of the Hormuz Strait. The KOSPI fell by 7.24% to close at 5,791.91, while the KOSDAQ index dropped by 4.62%. Semiconductor, automobile, and utility stocks saw significant declines, contrasting with an increase in the defense sector stocks. Experts caution that the instability in the Middle East and foreign variables are likely to continue exerting downward pressure on the domestic market.
During the same period, major indices on the New York Stock Exchange also saw a downtrend. The blockade of the Hormuz Strait by Iran and the spike in oil prices triggered concerns over inflation and a slowdown in the global economy, leading to panic selling. The Dow Jones Industrial Average fell by 403.51 points at the close, with the Philadelphia Semiconductor Index particularly affected. Even though President Trump announced measures to protect maritime trade, uncertainty in the markets remains high.
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Do you know 'KORU'? ... Korean Stock Market 3x ETF plunged '-45%' overnight - Yonhap InfomaxAs shockwaves spread from the full-scale war between the U.S. and Iran, the Korean stock market 3x leveraged ETF listed on the New York Stock Exchange showed extreme volatility, plummeting more than 40% overnight. According to Yonhap Infomax's current stock price screen (screen number 7219), as of 3:25 p.m. on the 3rd (local time), the 'Direxion Daily MSCI South Korea Bull 3X Shares (KORU)' ETF listed on the New York Stock Exchange is trading at $421.270, down 27.99% from the previous session. KORU also expanded its decline to -44.86% during the day. As the New York Stock Exchange entered regular trading, some of the declines were recovered.
'Collapse' Due to Hormuz Strait Blockade… 'Korean Stock Market 3x ETF' Plummets 31% [New York Stock Exchange Briefing] - The Korea Economic DailyCollapse due to Hormuz Strait Blockade... Korean Stock Market 3x ETF Plummets 31%, Panic Sell Triggered by Hormuz Blockade