Overview:
South Korean chipmaker SK Hynix reported third-quarter operating profit of 66.11 billion dollars, exceeding analyst estimates by 13.9%, as artificial intelligence demand lifts the semiconductor sector globally. The company announced share buybacks and dividend distributions exceeding 15 billion dollars. Oil prices climbed 1.3% to 115.36 dollars per barrel following reports of an attack on Saudi Arabia's Ras Tanura refinery, renewing supply concerns in the Middle East. Gold traded near 4,061 dollars per ounce ahead of a U.S. Federal Reserve interest rate decision.
Details:
SK Hynix's quarterly revenue jumped to 104.62 trillion won (78.86 billion dollars), up 327.9% year-over-year, far exceeding consensus forecasts of 98.34 trillion won. Operating profit surged 327.9% to 83.33 trillion won, driven by sustained demand for high-bandwidth memory chips used in artificial intelligence applications. The strong results prompted the South Korean stock exchange to activate its automatic trading halt mechanism when the Kospi index climbed 6.4%, exceeding a 5% threshold designed to prevent flash crashes.
Oil prices extended gains on geopolitical tensions, with Brent crude climbing 1.48 dollars to 115.36 dollars per barrel. Yemen's Houthi group claimed responsibility for a ballistic missile strike on Ras Tanura, Saudi Arabia's largest refinery, signaling escalation in attacks linked to the Iran conflict. U.S. West Texas Intermediate crude rose 1.22 dollars to 101.12 dollars per barrel.
The Federal Reserve was expected to hold interest rates steady, with market pricing showing an 84% probability of a rate increase in December. Gold remained stable near 4,061 dollars as investors awaited the Fed's policy decision and forward guidance.
Outlook:
Investors are monitoring whether the Fed signals a December rate increase or begins a pause cycle, which would influence precious metals and currency markets. Semiconductor strength and Middle East supply disruptions will likely remain key drivers of technology stocks and oil volatility through year-end.