Samsung, SK Hynix shares plunge over 5% in pre-market on U.S. rate fears

Shares of major South Korean semiconductor companies, Samsung Electronics and SK Hynix, experienced a significant downturn in pre-market trading on August 19. Both companies saw their stock prices fall by more than 5% due to the ripple effects of rising U.S. Treasury yields.

The catalyst for the decline appears to be the 30-year U.S. Treasury yield, which climbed to its highest point in 19 years. This surge in yields typically makes borrowing more expensive and can dampen investor appetite for growth stocks, particularly in the technology and semiconductor sectors.

As of 8:45 AM on the Nasdaq exchange, Samsung Electronics was trading down 15,000 Korean won, or 5.59%, at 253,500 won. SK Hynix also saw a substantial drop, trading down 108,000 Korean won in the same pre-market session. These movements reflect investor concerns about the broader economic impact of higher interest rates on global markets.