Stock market recovery remains sluggish despite rate freeze… the trap of long-term interest rates

After the Fed held rates at 3.50% to 3.75% in July, Korean stocks rebounded.

But longer-term U.S. Treasury yields rose, suggesting financial conditions have not eased enough.

Short-term yields fell, while AI spending and heavy Treasury and corporate bond supply kept pressure on long rates.

If rates stay elevated, borrowing costs and growth-stock discount rates may not fall enough to support a broad rally.

With heavy exposure to semiconductors and tech, Korea’s market is likely to remain sensitive to U.S. long yields and Big Tech funding conditions.