Chip Stocks Fall Amid South Korea's Kospi Drop Ahead of Earnings
Chip stocks continued a multi-day sell-off on Tuesday, contributing to broader declines in Asian markets as investors awaited major U.S. tech earnings later in the week. South Korea’s Kospi index fell nearly 10%, with SK Hynix and Samsung Electronics each dropping over 13%. The sharp decline led to trading halts by the Korea Exchange. In the U.S., semiconductor-related ETFs like VanEck Semiconductor dropped around 3%, while Micron Technology, Western Digital, Seagate Technology, and Astera Labs also fell significantly. The sell-off reflects growing concerns over rising AI infrastructure costs and China's advancing tech capabilities. Market participants are closely watching earnings from Amazon, Meta Platforms, Microsoft, and Apple for clues about demand in the sector. Meanwhile, Nasdaq-100 futures dropped more than 0.9%, while S&P 500 futures fell slightly as traders prepared for a potential Fed rate decision on Wednesday.
Tickers: $ALAB $INTC $MU $NVDA $SKHYV $SMCI $SMH $STX $WDC
Topics: AI infrastructure spending chip stocks Kospi index semiconductors