Global Markets Plunge as AI Rally Collapses Amid Fed Rate Hike Fears
Global equity markets experienced a severe selloff led by the semiconductor sector, with the Nasdaq plunging over 4% in its worst single-day drop since 2025. The rout extended into Asia on Monday, where South Korea's KOSPI crashed up to 9%, forcing a temporary trading halt as giants Samsung and SK Hynix plummeted. Investors also fled bonds, bitcoin, and gold as a strong U.S. jobs report increased the likelihood that the Federal Reserve will raise interest rates to combat inflation. Analysts suggest the crash was driven by a combination of macroeconomic pressure and technical overextension. While Broadcom's AI forecast pressured shares, Wells Fargo strategist Ohsung Kwon noted the move was driven more by positioning than fundamentals, citing an overbought semiconductor sector. Despite the…
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Chip stocks fell sharply, dragging the Nasdaq into a broad selloff. The decline was triggered by sector-wide weakness, with no single catalyst cited. ... Semiconductor stocks have rallied significantly year-to-date, fueling concerns that current valuations are unsustainable.
Gotrade News - The Nasdaq Composite plunged 4.18% to 25,709.43 on Friday, its largest single-day drop since 2025. The S&P 500 fell 2.64% to 7,383.74, posting its first negative week in ten weeks. A sharp semiconductor selloff drove the decline as investors trimmed crowded chip positions. Fears the Federal Reserve will stay higher-for-longer added pressure across US stocks...
Rising interest rates and the Iran ... tech stocks to continue rallying. "The market reaction today was more driven by positioning rather than fundamentals," said Ohsung Kwon, chief equity strategist at Wells Fargo. "The semiconductor sector was way overbought. That's why we're seeing the selloff...
Asian markets plunged as chip selloff halted KOSPI and pushed oil and dollar higher | Ukraine news - #Mezha
A sudden shift in sentiment sent semiconductor-heavy indices sharply lower across Asia. Traders brace for inflation data and a major SpaceX IPO later this week. As noted by Reuters Singapore, June 8 – Asian markets fell sharply on Monday, investors cooled the hot AI rally, and Israeli strikes ...
Kospi crashes 9%, trading halted for 20 minutes, as chip rout deepens; Samsung, SK Hynix worst hit - The Economic Times
Kospi crashes 9%, trading halted for 20 minutes, as chip rout deepens; Samsung, SK Hynix worst hitBy ... South Korea's KOSPI index saw a sharp decline on Monday. Investors sold off artificial intelligence stocks, revealing the market's heavy reliance on semiconductor giants. Samsung and SK Hynix shares fell significantly. This selloff followed a strong rally driven by AI ...
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