Weekly Market Review - February 14, 2026

Week of February 10-13, 2026 (Shortened Week - Markets Closed Friday for Lincoln’s Birthday Observed)

Executive Summary

The week of February 10-13, 2026 showcased a historic divergence between Korean and U.S. markets, with Korean semiconductor stocks soaring to all-time highs while U.S. tech faced valuation pressures. Korean equities demonstrated exceptional strength driven by institutional and foreign buying, while U.S. markets experienced sector rotation away from mega-cap technology.

Week in Numbers (4 Trading Days)

🇰🇷 Korean Markets - EXCEPTIONAL PERFORMANCE

• Samsung Electronics: ₩165,800 → ₩181,200 (+9.3% 🔥)
• SK Hynix: ₩876,000 → ₩880,000 (+0.5%)
• Hyundai Motor: ₩480,500 → ₩499,000 (+3.8%)
• KOSPI: Hit 5,522 on Wednesday - FIRST TIME ABOVE 5,500!

🇺🇸 U.S. Markets - MIXED TO NEGATIVE

• Magnificent 7: Mostly declined, led by Apple (-2.27% Thu), NVIDIA (-2.21% Thu)
• Sector Rotation: Capital flowing from tech to value, materials, energy
• Indices: Modest gains early week, pressure late week

💱 Currency & Bonds

• USD/KRW: 1,460 → 1,439 (won strengthening ~1.4%)
• US 10Y Treasury: 4.143% → 4.056% (-8.7 bps, flight to safety)

🎯 Top 5 Takeaways

1. Korean Semiconductor Breakout - Historic Rally

Samsung Electronics surged +9.3% in just 4 days, breaking out to new highs while U.S. tech sold off. This represents:

• Strongest weekly performance for Samsung in months
• Validation of AI chip supply chain strength
• Foreign institutional buying driving momentum
• KOSPI breaking 5,500 for first time ever (Wednesday +3.13%)

Why it matters: Korean chips offer better value (Samsung 12x P/E) vs. U.S. peers (NVIDIA 35x P/E) with similar AI exposure.

2. U.S. Tech Under Pressure - Valuation Concerns

The Magnificent 7 faced broad selling pressure:

• Apple: Down across the week, -5% on single day
• NVIDIA: -2.21% Thursday despite AI leadership
• Meta, Amazon, Google: All declined mid-week
• Only Tesla positive: +0.09% Thursday (autonomous driving narrative)

Driver: Market questioning AI monetization timeline and $175-185B capex plans (Alphabet).

3. Historic Market Divergence - Korea vs. U.S.

Rarely do we see such stark performance gaps:

• Korean tech UP while U.S. tech DOWN
• Semiconductors leading in Korea, lagging in U.S.
• Suggests supply chain strength > end-user AI concerns

Investment implication: Geographic diversification paying off.

4. Sector Rotation Accelerating

• Materials & Energy: +10% YTD (sector leaders)
• Technology: -1.3% YTD despite AI theme
• Bonds rallying: 10Y yield down 9 bps (defensive positioning)

Classic late-cycle rotation pattern emerging.

5. Won Strength Supporting Korean Stocks

USD/KRW declining from 1,460 → 1,439 shows:

• Capital inflows to Korea
• Foreign confidence in Korean equities
• Exporters managing FX well despite stronger won

Weekly Performance Tables

Korean Stocks - Week of Feb 10-13

KOSPI Weekly: 5,301 (Mon) → ~5,360 (Thu avg), Peak 5,522 (Wed) ✨

U.S. Magnificent 7 - Week Performance

6 of 7 declined - broad tech weakness.

Day-by-Day Recap

Monday, February 10 - Mixed Start

• U.S.: Dow +0.24%, Nasdaq -0.41% (rotation beginning)
• Korea: KOSPI +0.07% (modest start)
• Samsung -0.36%, SK Hynix -1.24% (early consolidation)
• Theme: AI monetization questions emerging

Tuesday, February 11 - Korean Strength Emerges

• U.S.: S&P flat, Nasdaq -0.16% (tech pressure continues)
• Korea: KOSPI +1.00% 🚀 (breakout day)
• Samsung +1.21%, SK Hynix +1.83%, Hyundai +5.93%!
• Theme: Semiconductor recovery cycle confirmed

Wednesday, February 12 - HISTORIC DAY

• KOSPI +3.13% → 5,522.27 - ALL-TIME HIGH! 🎉
• Samsung +6.44% (₩178,600) - massive breakout
• SK Hynix +3.26%, Hyundai +0.59%
• U.S.: Tech selloff accelerates (S&P -1.57%, Nasdaq -2.03%)
• Theme: Complete divergence - Korea soaring, U.S. falling

Thursday, February 13 - Consolidation

• Korea: KOSPI -0.28% (healthy pullback after historic rally)
• Samsung +1.46%, SK Hynix +0.92%, Hyundai +1.42%
• U.S.: Mixed (S&P +0.05%, Nasdaq -0.22%)
• Mag 7 continued pressure (Apple -5%, NVIDIA -2.21%)
• Theme: Korean resilience vs. U.S. fragility

Market Analysis & Themes

🔥 Primary Theme: The Great Divergence

Korean Bull Case Validated:

1. HBM Demand: SK Hynix and Samsung dominating high-bandwidth memory for AI chips
2. Valuation Gap: Korean chips trading 12-15x P/E vs. U.S. 30-35x
3. Supply Chain Power: Korea controls critical semiconductor inputs
4. Foreign Buying: Institutional flows into Korean equities
5. Government Support: Korean chip subsidies and R&D support

U.S. Tech Bear Case Emerging:

1. Valuation Concerns: $175-185B Alphabet capex announcement spooked investors
2. Monetization Questions: When will AI investments pay off?
3. Regulatory Risks: Antitrust pressures on Big Tech
4. Competition: DeepSeek and Chinese AI challengers
5. Sector Rotation: Money flowing to value, materials, energy

📊 Sector Rotation Deep Dive

Winners (YTD):

• Materials: +10%
• Energy: +10%
• Korean Tech: Strong week
• Industrials: Steady

Losers (YTD):

• U.S. Technology: -1.3%
• Communication Services: Weak
• Consumer Discretionary: Mixed

What it means: Classic late-cycle rotation from growth to value, from expensive to cheap, from U.S. to international.

💰 Bond Market Signals

10-Year Treasury: 4.143% → 4.056% (-8.7 bps)

• Flight to safety amid tech volatility
• Fed policy expectations shifting
• Defensive positioning by institutions

Yield Curve: Modest steepening as long-end rallies.

Implication: Risk-off sentiment building despite equity strength in Korea.

🌏 Geographic Divergence

Korea Outperforming:

• Technology strength
• Export competitiveness
• Semiconductor dominance
• Foreign capital inflows

U.S. Underperforming:

• Tech valuation concerns
• AI monetization uncertainty
• Regulatory headwinds
• Sector rotation pressures

Risk Factors & Opportunities

Risks 🚨

1. Korean Won Strength: Could hurt export margins if continues
2. U.S. Tech Contagion: Global tech selloff could spread to Korea
3. NVIDIA Earnings (Feb 25): Critical test for AI narrative - miss would hurt sector globally
4. Geopolitical: China-Taiwan tensions, North Korea risks
5. Valuation: Korean stocks not cheap on absolute basis, just relative to U.S.

Opportunities 💡

1. Samsung Breakout: Momentum trade with room to run toward ₩200,000
2. Value Rotation: Materials, energy, industrials catching bid
3. Treasury Bonds: 4%+ yields attractive for fixed income allocation
4. Korean ETFs: Broad Korea exposure (EWY) benefiting from index gains
5. Defensive Positioning: Quality dividend stocks outperforming

Week Ahead Preview (Feb 17-21)

Key Events

Monday, February 17:

• U.S. Markets CLOSED - Presidents Day holiday
• Korean markets open (normal trading)

Economic Calendar:

• Wednesday: U.S. Retail Sales (Jan), PPI
• Thursday: Philly Fed Manufacturing Index, Jobless Claims
• Friday: Leading Economic Indicators

Earnings to Watch

• Walmart (WMT) - Feb 18 (retail health check)
• Home Depot (HD) - Feb 19 (consumer spending)
• Applied Materials (AMAT) - Feb 20 (semiconductor equipment demand)

🔥 BIG ONE: NVIDIA (NVDA) - Feb 25 (following week, but market will position ahead)

Technical Levels

S&P 500:

• Support: 6,800
• Resistance: 7,000
• Trend: Neutral to slightly bearish

KOSPI:

• Support: 5,300
• Resistance: 5,550
• Trend: Bullish (broke out above 5,500!)

Samsung:

• Support: ₩175,000
• Resistance: ₩185,000
• Target: ₩200,000 (psychological level)

Investment Strategy Recommendations

Conservative Allocation

• 40% Bonds: 10-year Treasuries at 4%+ attractive
• 30% Korean Equities: Samsung, SK Hynix, diversified Korea ETF
• 20% U.S. Large Cap: Quality dividend stocks (JNJ, PG, KO)
• 10% Cash: Dry powder for opportunities

Rationale: Preserve capital, earn income, selective growth exposure.

Balanced Allocation

• 50% Equities: 25% Korean tech, 25% U.S. value/materials
• 30% Bonds: Mix of Treasuries and IG corporate
• 10% Commodities: Energy, materials exposure
• 10% Cash: Tactical flexibility

Rationale: Participate in rotation, hedge with bonds, maintain liquidity.

Aggressive Allocation

• 70% Equities: 40% Korean tech, 20% U.S. value, 10% emerging markets
• 20% Bonds: Short-duration for flexibility
• 10% Alternatives: Commodities, sector rotation plays

Rationale: Ride Korean momentum, play sector rotation, accept higher volatility.

Conclusion

The week of February 10-13, 2026 will be remembered as a watershed moment - the week Korean markets decisively broke out to all-time highs while U.S. tech struggled under the weight of valuation concerns and AI monetization doubts.

Key Lessons:

1. Geographic Diversification Works: Korean exposure saved portfolios this week
2. Sector Rotation is Real: Materials and energy outperforming tech YTD
3. Valuation Matters: Cheaper Korean stocks attracting capital from expensive U.S. names
4. Supply Chain > End User: Chip suppliers (Korea) outperforming chip buyers (U.S. hyperscalers)

Looking Ahead:

• Short-term: Consolidation likely after Korean rally; U.S. tech stabilization needed
• Medium-term: NVIDIA earnings (Feb 25) critical inflection point for AI narrative
• Long-term: Korean semiconductor dominance structural theme; U.S. tech needs to prove AI ROI

Bottom Line: This was a historic week highlighting the shifting center of gravity in global technology from the U.S. to Asia. Investors ignoring Korean markets do so at their peril.

Report compiled: February 14, 2026
Data sources: Daily market reports (Feb 10-13), Naver Finance, Yahoo Finance, XE.com, CNBC
Full daily reports: /Users/sam/.openclaw/workspace/market-reports/

This report is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results.