US CPI Rises 3.8%, Adding Pressure on Korean Semiconductor Sentiment

US consumer prices rose 3.8% in April, while core inflation also showed signs of pressure, raising concerns for investor sentiment toward Korean semiconductors. In a polarized US economy, persistent inflation could make the Federal Reserve’s rate-increase decisions more difficult. The original report also noted that, after an oil price surge triggered by the fallout from the US-Iran war, the gap between long- and short-term interest rates widened and US credit risk increased. If rates and credit concerns remain in focus at the same time, appetite for risk assets could weaken, creating a negative factor for semiconductor investment sentiment. Source: mk.co.kr.