Memory Chip Stocks Surge Alone Amid US Inflation Concerns
The US Federal Reserve (Fed) froze its benchmark interest rate at 3.50-3.75% through its regular Federal Open Market Committee (FOMC) meeting on March 18, 2026 (local time). Fed Chair Jerome Powell cited economic uncertainties stemming from inflation concerns and geopolitical risks in the Middle East. The Fed revised its forecast for US real Gross Domestic Product (GDP) growth this year to 2.4%, and its Personal Consumption Expenditures (PCE) price inflation forecast to 2.7%. During the interest rate freeze decision process, Fed Governor Steven Myron cast the sole dissenting vote, arguing for a 0.25 percentage point cut.
Major tech stocks showed mixed performance due to the US Federal Reserve's inflation concerns. On March 18 (local time), Micron Technology rose 1.30% and SanDisk increased by 4.80% in the US stock market. Intel and AMD also rose 2.69% and 1.60%, respectively. Conversely, Nvidia (-0.50%), Broadcom (-1.60%), and TSMC (-1.87%) declined. Inflation worries exerted downward pressure on tech stocks overall.
Memory semiconductor stocks recorded gains, driven by an improving industry outlook. Big tech companies' continued investment in artificial intelligence (AI) infrastructure has led to increased demand for high-bandwidth memory and data center storage. As AI technology advances, the demand for high-capacity memory and faster processing speeds has grown, leading to capital inflow into memory semiconductor companies. The memory semiconductor sector showed an upward trend, with confirmed performance improvements for memory semiconductor firms due to growing demand for high-capacity memory driven by AI advancements.
The gap between US and South Korean benchmark interest rates remained at 1.25 percentage points at the upper end. President Donald Trump has nominated former Fed Governor Kevin Warsh as Jerome Powell's successor, whose term as Fed Chair ends in May. In the cryptocurrency market, as of the morning of March 19, the total market capitalization of meme coins decreased by 9.22% to $30.25 billion compared to 24 hours prior. Dogecoin traded down 6.33% at $0.09505, with most meme coins including Shiba Inu (-5.49%), Pepe (-5.54%), and Trump Coin (-5.44%) also declining.