Overview
- A global tech sell‑off drove heavy losses with South Korea’s Kospi tumbling about 10% on Tuesday and prompting a 20‑minute trading halt after SK hynix and Samsung shares plunged more than 10% each.
- Weakness in U.S. megacaps and headline shocks — including an Alphabet AI researcher’s departure and post‑IPO falls in SpaceX stock — helped transmit the rout from New York to Asian markets.
- Local reports that SK hynix may slow expansion of AI memory‑chip capacity and record retail margin borrowing plus newly launched leveraged single‑stock ETFs amplified selling pressure in Seoul.
- Markets stabilized on Wednesday with the Kospi and major chip names recovering some losses, but volatility stayed elevated and global tech indices remained notably weaker.
- Investors are focusing on Micron’s imminent quarterly report and Thursday’s U.S. PCE inflation release as the key tests that will determine if the pullback is a short correction or a wider reassessment of the AI trade.