Markets Whipsaw on May 13: Seoul Surges 2.6%, US Futures Rebound, Walmart Cuts 1,000 Jobs, and Inflation Hits a 3-Year High

The Headline Numbers

Seoul's KOSPI closed Wednesday at 7,844.01 — up 2.63%, or 200.86 points, according to The Korea Herald. That's a fresh record high, one day after the index shed 2.29% in a single session.

Trade volume was massive: 733.4 million shares worth 49.7 trillion won ($33.4 billion). Individual investors and domestic institutions bought a combined net 3.6 trillion won worth of stock. Foreigners sold a net 3.7 trillion won.

In the US, Bloomberg reported stock futures signaled a rebound as dip buyers snapped up tech shares ahead of Wednesday's open. CNBC confirmed semiconductor names like Micron were coming right back after just one day of selling.

What Drove the Bounce

Semiconductors led in Seoul. SK hynix surged 7.68% to 1.98 million won. Hyundai Motor jumped 9.91% to 710,000 won. Samsung Electronics added 1.79% to 284,000 won, according to The Korea Herald.

In the US, Nvidia's Jensen Huang confirmed he's joining President Trump's two-day summit in China, according to CNBC. Bank of America immediately raised its Nvidia price target to $320 from $300. Markets read the Huang trip as a potential opening for chip sales and bought accordingly.

Morgan Stanley hiked its S&P 500 year-end target to 8,300, citing an earnings boom, according to Bloomberg.

The Inflation Backdrop

April US inflation just posted its fastest pace in nearly three years, according to The Korea Herald's reporting on overnight US data. Oil is back above $100 per barrel as Middle East peace hopes fade.

CNBC noted that S&P futures actually moved lower Wednesday morning after April wholesale inflation data came in hotter than expected. The bounce in futures happened anyway — dip buyers moved in regardless.

FXEmpire analyst James Hyerczyk said earnings conviction is overriding macro signals right now. "The conviction is in the numbers, not the macro," he wrote. He also warned that government spending artificially inflated Q1 GDP and that higher gasoline prices could pressure consumer spending in Q2.

Walmart Cuts 1,000 Jobs

While markets celebrated, Walmart eliminated 1,000 positions, according to Reuters via CNBC. The world's largest retailer — and the largest US private employer with roughly 1.6 million American workers — is restructuring around a "single, shared platform" strategy.

Walmart's head of global technology Suresh Kumar and head of global AI acceleration Daniel Danker sent a memo to employees Tuesday explaining the cuts as a move to "simplify how the work is organized." The company is consolidating technology roles as it shifts toward AI-driven operations.

The company first hit $1 trillion in market cap in February. Quarterly results drop May 21. Many of the eliminated workers were told to either relocate to Bentonville or Northern California — or accept severance, per the Wall Street Journal.

Alibaba Flashes a Warning Sign

Not every China-adjacent story Wednesday was bullish. Alibaba shares fell 2% in premarket trading after the Chinese tech giant missed revenue estimates and reported an operating loss for the first time since the COVID pandemic, according to CNBC.

Alibaba is burning cash on AI infrastructure and faster delivery. That's the same bet every tech giant is making. The difference is Alibaba is losing money doing it — while US markets are pricing in that the bet will pay off for everyone.

The South Korea Political Wrinkle

Back in Seoul, there's a domestic political development that briefly spooked markets. Korean President Lee Jae Myung had to personally clarify on social media that his chief policy adviser's viral post about "redistributing profits from the AI boom" was about surplus tax revenue — NOT a new levy on corporate profits, according to The Korea Herald.

Sentiment recovered after the clarification. The quick market reaction to a social media post by a presidential adviser underscores how sensitive investors are to policy signals right now.

The Fed's Dilemma

Inflation at a three-year high means the Fed has no room to cut rates. Oil above $100 eats into consumer spending and corporate margins. Walmart cutting jobs while touting AI previews what the next phase of corporate America looks like.