Overview
- The rout began in South Korea when the Kospi plunged about 10 percent following sharp drops in SK Hynix and Samsung, a move that spread quickly to chip and tech shares worldwide.
- US and European technology indexes fell heavily, with the Nasdaq 100 down roughly 3.3 percent as investors sold names tied to the recent AI rally.
- Reports that SK Hynix would delay expansion of HBM (high‑bandwidth memory) capacity raised fears of weaker near‑term demand for AI datacenter chips and acted as the immediate market trigger.
- Oil prices eased to multi‑week lows after reports of progress in US–Iran talks and resumed shipments through the Strait of Hormuz, while markets also reprice risks from a potentially tighter US monetary policy under Fed Chair Kevin Warsh.
- Market structure and sentiment have changed: SpaceX has given back much of its IPO gains, index moves such as Hochtief entering the DAX alter flows, and high valuations plus leveraged retail positions in Korea mean the sector correction could deepen if Micron's results disappoint.