Global Tech Selloff Deepens as Enthusiasm for AI Stocks Wobbles
Samsung Electronics and SK hynix led losses as foreign investors sold 4.51 trillion won, heightening fears over AI funding costs and Fed tightening.
- On Thursday, South Korea's benchmark KOSPI index plunged 8%, triggering a 20-minute trading halt as the Korea Exchange activated a circuit breaker amid a regionwide technology-led sell-off.
- Hotter-than-Expected U.S. inflation data released Wednesday fueled the sell-off; the consumer price index rose 3.7% in September, surpassing the 3.6% forecast and raising Federal Reserve rate hike odds.
- Samsung Electronics and SK Hynix, major chipmakers in Seoul, plunged roughly 9% to 11% during the session as foreign investors sold shares aggressively amid technology sector concerns.
- Global semiconductor stocks are set to lose nearly $2 trillion in market value this week, prompting investors to reassess the sustainability and costs of artificial intelligence infrastructure buildout.
- Markets now price a 37.1% probability of a 25-basis-point Federal Reserve rate hike this month, according to CME Group's FedWatch tool, up sharply from 22% before the inflation data.
169 Articles
169 Articles
Investors of many hyped technology stocks have to be strong these days. Inflation concerns and doubts about the financing of the AI boom cause fierce price setbacks. But there are also massive losses in other areas.
More than $1 trillion has been wiped out of the value of 20 of the largest shares in the artificial intelligence and semiconductor industry since the beginning of the week. And this time, investors who were usually in a hurry to buy in periods of decline seem much more hesitant. Sales have expanded from Asia to...
Global chipmaker sell-off deepens as enthusiasm for AI stocks wobbles
London/New York (CNN) — Chipmaker stocks sold off sharply Thursday, sending investors in search of safety elsewhere, as a growing list of worries including rising borrowing costs and competition from China caused traders to sour on some AI investments.
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