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Global tech sell-off hits chip stocks as South Korea's KOSPI plunges

Investors dumped semiconductor and AI-linked shares, with South Korea's benchmark index falling about 8% intraday on October 15. Worries about borrowing costs, inflation and AI profits fueled the slide.

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What happened

A global sell-off in technology and chip stocks, led by Samsung and SK Hynix, pushed South Korea's KOSPI index sharply lower and triggered its 10th circuit breaker of the year. Markets across Asia and Europe slid as investors reassessed how much AI-linked semiconductor stocks are worth. Later reports said Asian shares had mostly rebounded after Wall Street gains, while Korean market swings continued and questions grew over regulators' response.

Why it matters

Analysts warned the tremor could be a sign of a larger AI stock crunch ahead.

Timeline

  1. Oct 14, 10:49 PM ET: Samsung and SK Hynix shares led South Korea's KOSPI lower as a global chip stock sell-off deepened.
  2. Oct 15, 1:10 AM ET: South Korea's stock market triggered its 10th circuit breaker of the year, with the KOSPI plunging nearly 8% intraday.
  3. Oct 15, 10:38 AM ET: Top AI and semiconductor stocks had lost over $1 trillion in value that week, amid worries about valuations, competition and higher interest rates.
  4. Oct 16, 2:08 AM ET: Asian shares mostly rebounded after Wall Street gains, a day after the tech sell-off dragged stocks lower.
  5. Oct 16, 3:22 AM ET: Questions mounted over the effectiveness of South Korean financial authorities as market volatility persisted.

Coverage

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