Tech Stocks Drop Amid AI Concerns and Asian Market Selloff
Asian markets experienced a broad selloff on Tuesday as concerns over the sustainability of funding for artificial intelligence (AI) development and rising competition from China weighed heavily. South Korea's KOSPI index fell nearly 10%, triggering circuit breakers, marking its worst monthly decline since the Asian financial crisis in 1997. Chipmakers like SK Hynix and Samsung Electronics saw losses exceeding 12% as their recent rally unwound rapidly amid leverage concerns. In Japan, the Nikkei dropped about 4%. China's CXMT Corp raised $8.6 billion on its debut, signaling potential capacity expansion that could challenge Korean firms. Meanwhile, oil prices continued to fall and U.S.-Iran tensions eased slightly after a pause in airstrikes by Washington. The market is pricing in roughly a 38% chance of a Federal Reserve rate hike this week.
Topics: AI Asian markets China competition chip stocks semiconductors