US markets fall as Treasury yields hit 5% and oil prices surge

US stock markets experienced two consecutive days of losses as investors reacted to rising long-term interest rates and surging oil prices. The 10-year US Treasury yield breached the 5% threshold, reaching its highest level since July 2007, driven by concerns over inflation and potential Federal Reserve tightening. Simultaneously, West Texas Intermediate (WTI) crude oil rose above $100 per barrel due to supply disruptions in Saudi Arabia, Libya, and the Red Sea.

Amidst this volatility, analysts at KB Securities have identified Samsung Electronics and SK Hynix as top picks for a potential rebound. Despite market fears regarding a slowdown in AI development, the report suggests that AI infrastructure investment is actually being revised upward. The firm noted that memory demand for High Bandwidth Memory (HBM) and high-performance DRAM remains strong, with inventory levels at historic lows, suggesting a disconnect between current stock prices and underlying fundamentals.