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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The Economic Times
Times of IndiaUS Stocks: US market edges lower ahead of Fed decision; chip stocks wobble
Major stock indexes on Wall Street opened lower on Wednesday. Investors awaited the Federal Reserve's monetary policy decision amid Middle East tensions. Chip stocks also faced pressure ahead of Big Tech earnings later this week. The Dow Jones Industrial Average fell 73.1 points at the open. The S&P 500 and Nasdaq Composite also saw declines.
Wall St opens lower ahead of Fed decision; chip stocks wobble
July 29 (Reuters) - Wall Street's main stock indexes opened lower on Wednesday as investors awaited the Federal Reserve's monetary policy verdict against a backdrop of simmering Middle East tensions, while chip stocks struggled ahead of Big Tech...
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.
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%.
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