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Wall Street Mixed Early as Chip Sell-Off Continues
Heavy losses in SK Hynix and Samsung dragged the KOSPI down about 10% as renewed AI spending concerns hit global semiconductor shares.
- On Tuesday, South Korea's KOSPI index plunged nearly 11% to 6,023.66, marking its lowest level since April as heavy selling pressure in computer chipmaking stocks triggered temporary trading halts.
- Renewed concerns over rising competition from Chinese startups and domestic mass production of deep ultraviolet chipmaking tools drove the sell-off, as traders questioned whether AI-related market gains would sustain.
- Shares in Samsung Electronics sank 13.4%, while SK Hynix tumbled 14.7%, as the two companies account for more than half of the KOSPI's weighting and led the index lower.
- Regional markets suffered contagion: Japan's Nikkei fell 4.1% and Shanghai Composite lost 1.2%, though Morningstar equity analyst Jing Jie Yu called the sell-off "a knee-jerk reaction and overdone."
- Deutsche Bank strategist Jim Reid noted that global chipmaking leaders' dominant position remains intact despite current volatility, suggesting the sell-off reflects AI investment spending concerns rather than structural competitive threats.
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32 Articles
32 Articles
Nasdaq 100 Is Approaching a Correction as Chips Selloff Worsens
The Nasdaq 100 Index inched closer to a correction Tuesday as the selloff in semiconductor stocks turns ugly with investors questioning the amount of money Big Tech is spending on artificial intelligence.
·New Delhi, India
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The Dow Jones, with its industrial focus, gained 1.03%, while the Nasdaq, which tracks major technology companies, lost 0.22%. The broader S&P 500 index rose 0.22%.
·Issy-les-Moulineaux, France
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Coverage Details
Total News Sources32
Leaning Left5Leaning Right5Center12Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
L 23%
C 54%
R 23%
Factuality
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