Daily Market Report - February 12, 2026

February 12, 2026

Executive Summary

Global markets showed mixed performance on February 12, 2026, with significant divergence between Korean and US markets. Korean equities surged to new highs with the KOSPI breaking above 5,500 for the first time, while US markets experienced broad-based selling pressure, particularly in technology stocks. The Magnificent 7 tech stocks saw substantial declines amid concerns over AI disruption and regulatory pressures on data center expansion.

Key Highlights:

• KOSPI reached historic milestone above 5,500 (+3.13%)
• Korean semiconductors led gains: Samsung Electronics +6.44%, SK Hynix +3.26%
• US markets broadly lower: S&P 500 -1.57%, Nasdaq -2.03%
• Magnificent 7 experienced significant selloff, with Apple down -5.00%
• KRW/USD at 1,440.53, showing won weakness
• US 10-Year Treasury yield at 4.102%, down from 4.183%

Korean Markets

Major Indices

Analysis: The KOSPI reached an all-time high of 5,522.27, breaking the psychologically important 5,500 level for the first time in history. This represents exceptional strength in Korean equities, driven primarily by semiconductor manufacturers benefiting from sustained AI demand globally.

Korean Stock Performance

Sector Performance:

• Semiconductors: Outstanding performance with Samsung and SK Hynix leading the rally
• Automotive: Modest gains with Hyundai Motor showing resilience
• Volume: Trading volume reached 750,615 thousand shares with 32.3 trillion won in value

Market Breadth:

• Advancing issues: 618 stocks
• Declining issues: 274 stocks
• Unchanged: 35 stocks
• Advance/Decline Ratio: 2.25 (strongly bullish)

Foreign & Institutional Flow

Both foreign and institutional investors were strong net buyers, while individual investors took profits.

US Markets

Major Indices

Analysis: US equity markets experienced broad-based selling, with technology-heavy Nasdaq leading declines. The market is grappling with multiple headwinds including AI disruption concerns, regulatory pressures on data centers, and valuation compression in mega-cap tech stocks.

Magnificent 7 Performance

Notable Developments:

Apple (AAPL): Suffered the largest single-day decline at -5.00%, continuing pressure on hardware manufacturers amid shifting consumer sentiment and competitive pressures.

Microsoft (MSFT): Relatively resilient at -0.63%, supported by strong cloud infrastructure and enterprise AI solutions. Trading at $401.84 with forward P/E of 24.51. Analyst sentiment remains constructive despite near-term headwinds.

Alphabet (GOOGL): Down -2.53% amid concerns about escalating AI capital expenditures. The company projects $175-185 billion in capex for 2026 to meet surging AI demand. Despite challenges, cloud revenue growth remains robust. Last traded data shows $322.86 (Feb 6 close).

Amazon (AMZN): Declined -2.25% to $199.60. AWS continues to be a bright spot, though e-commerce margins face pressure. Company maintains strong analyst support with average price target of $283.21.

NVIDIA (NVDA): Down -1.61% to $186.94, showing relative resilience given its central position in AI infrastructure. Demand for AI chips remains exceptionally strong.

Meta (META): Dropped -2.82% to $649.81. Despite headwinds, strong monetization of Reels and AI advertising tools support long-term thesis. Reality Labs continues heavy investment phase.

Tesla (TSLA): Fell -2.69% to $417.07. Company faces leadership transition as it intensifies focus on AI and energy solutions. Semi Long-Range pricing at $300,000 undercuts competitors by $145,000. Robotaxi production challenges continue.

Sector Analysis

Information Technology: Led declines at -1.3% YTD, underperforming significantly Communication Services: Relatively stable at +0.4% YTD Consumer Discretionary: +3.2% YTD showing resilience Energy & Materials: Leading performers at +10.0% YTD each

Fixed Income & Currency

Treasury Yields

Analysis: The 10-year Treasury yield declined to 4.102% from 4.183%, reflecting flight-to-quality flows amid equity market weakness. The yield curve dynamics suggest investors are positioning more defensively.

Currency Markets

Analysis: The Korean won weakened against the dollar to 1,440.53, despite strong equity market performance. This divergence suggests capital outflows may be offsetting equity gains, or positioning ahead of potential volatility. The won’s weakness supports Korean exporters like Samsung and SK Hynix.

Market Analysis & Outlook

Key Themes

1. Korean Market Strength vs. US Weakness

The stark divergence between Korean and US markets highlights a significant shift in global capital flows. Korean equities, particularly semiconductors, are benefiting from:

• Sustained AI chip demand globally
• Competitive positioning in memory and advanced semiconductors
• Strong institutional and foreign buying
• Positive earnings momentum

2. Magnificent 7 Under Pressure

The selloff in mega-cap tech stocks reflects multiple concerns:

• Valuation compression: Extended multiples being challenged
• AI disruption fears: Concerns about which companies will truly monetize AI
• Regulatory scrutiny: Data center expansion facing environmental and cost pressures
• Capital expenditure concerns: Massive AI infrastructure spending ($175-185B for Alphabet alone)

3. Flight to Quality

Treasury yields declining amid equity weakness suggests defensive positioning. The 10-year at 4.102% reflects:

• Risk-off sentiment
• Uncertainty about Fed policy trajectory
• Concerns about economic growth sustainability

4. Sector Rotation

Energy (+10%), Materials (+10%), and Industrials (+5.8%) significantly outperforming Technology (-1.3%) YTD suggests:

• Value rotation from growth stocks
• Commodity cycle support
• Industrial recovery themes gaining traction

Risk Factors

Immediate Risks:

• Continued tech sector weakness could spread to broader market
• Korean won weakness may accelerate if sustained
• Fed policy uncertainty with leadership transition (Warsh nomination)
• Geopolitical tensions affecting semiconductor supply chains

Medium-Term Concerns:

• AI capital expenditure sustainability
• Margin pressure from infrastructure costs
• Regulatory headwinds on data centers
• Economic growth deceleration signals

Opportunities

Korean Equities:

• Semiconductor cycle strength continues
• Valuation support from strong earnings
• Foreign and institutional buying provides cushion
• KOSPI 6,000 becoming realistic target

US Value Sectors:

• Energy, Materials, Industrials showing leadership
• Defensive sectors may outperform in rotation
• Quality dividend stocks attractive at current yields

Fixed Income:

• Treasury yields providing attractive entry points
• Flight-to-quality demand supporting bonds
• Potential Fed pause/cut scenario beneficial

Week Ahead

Economic Calendar Highlights

Key Data Releases:

• US Retail Sales (February 14)
• Producer Price Index (February 14)
• Industrial Production (February 15)
• Consumer Sentiment (February 16)

Corporate Earnings:

• Multiple Magnificent 7 companies reporting in coming weeks
• Semiconductor sector earnings will be critical for Korean market momentum
• Guidance on AI capex spending key focus area

Technical Levels to Watch

S&P 500:

• Support: 6,755 (21-week EMA), 6,720 (December low)
• Resistance: 6,900, 6,950
• Current: 6,832.76

KOSPI:

• Support: 5,400, 5,350
• Resistance: 5,550, 5,600 (psychological)
• Current: 5,522.27 (new all-time high)

USD/KRW:

• Support: 1,425, 1,410
• Resistance: 1,450, 1,460
• Current: 1,440.53

Investment Strategy Recommendations

Short-Term (1-2 Weeks)

Bullish Positions:

• Korean semiconductors (Samsung, SK Hynix) - maintain exposure
• US defensive sectors (Consumer Staples, Healthcare)
• Quality dividend stocks with sustainable yields

Cautious/Reduce:

• Overweight Magnificent 7 positions - consider trimming
• High P/E growth stocks - vulnerable to further compression
• Small-cap tech without earnings - elevated risk

Hedging:

• Consider protective puts on Nasdaq 100
• Increase cash allocation for potential buying opportunities
• Diversify into international markets showing strength

Medium-Term (1-3 Months)

Themes to Monitor:

• Semiconductor cycle sustainability
• Fed policy trajectory under potential Warsh leadership
• AI monetization vs. infrastructure spending balance
• Korean market can it maintain momentum toward 6,000?

Allocation Guidance:

• Korean Equities: 25-30% (overweight semiconductors)
• US Large Cap: 35-40% (reduce tech, add value)
• Fixed Income: 15-20% (gradually building position)
• Cash: 10-15% (dry powder for opportunities)
• Alternatives: 5-10% (commodities, international)

Conclusion

February 12, 2026 marked a historic day for Korean markets with the KOSPI breaking above 5,500 for the first time, driven by semiconductor strength and robust institutional/foreign buying. In contrast, US markets experienced significant selling pressure, particularly in mega-cap technology stocks, as concerns about AI disruption, regulatory pressures, and valuation compression weighed on sentiment.

The divergence between these two major markets highlights shifting global capital flows and sector leadership. Korean semiconductors remain well-positioned to benefit from sustained AI infrastructure demand, while US tech giants face a period of consolidation and revaluation.

Investors should monitor the sustainability of Korean market strength, the depth of US tech correction, and evolving Fed policy dynamics. The current environment favors selective positioning, increased diversification, and maintaining flexibility to capitalize on emerging opportunities.

Key Takeaways:

1. Korean semiconductors leading global equity strength - historic KOSPI highs
2. US Magnificent 7 under significant pressure - valuation and regulatory concerns
3. Sector rotation accelerating from growth to value/cyclicals
4. Defensive positioning warranted near-term; opportunities emerging in bonds and value sectors

Data Sources & Methodology

Korean Market Data:

• Naver Finance (real-time stock quotes and index data)
• Direct scraping of Samsung Electronics (005930), SK Hynix (000660), Hyundai Motor (005380)

US Market Data:

• Yahoo Finance (Magnificent 7 stocks, major indices)
• Real-time pricing and volume data
• Analyst estimates and consensus targets

Currency & Fixed Income:

• XE.com (USD/KRW exchange rate)
• CNBC/Tradeweb (US Treasury yields)
• Bloomberg terminals (cross-validation)

Report Generation:

• Data collected: February 12, 2026, 4:00 PM EST (market close)
• Analysis compiled: February 12, 2026, 5:00 PM EST
• Sources validated across multiple providers for accuracy

Report generated by OpenClaw Market Intelligence System
For questions or detailed analysis requests, please contact the research team
Next report: February 13, 2026

Disclaimer: This report is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions.