Tech market sell-off deepens amid fears over US inflation and AI debt
Source: The Guardian ·
Chip makers and tech investors such as Samsung and SoftBank plunge as global investors fret over potential interest rate hikesAn accelerating sell-off of AI-linked shares has hit global markets, as fears over rising inflation and future interest rate hikes spooked traders already wary of the heavily indebted sector.South Korea’s benchmark KOSPI 200 index, which is heavily skewed towards the…
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An accelerating sell-off of AI-linked shares has hit global markets, as fears over rising inflation and future interest rate hikes spooked traders already wary of the heavily indebted sector. South Korea’s benchmark Kospi 200 index, which is heavily skewed towards the companies that make memory chips, fell more than 8% overnight to a six-month closing low, triggering circuit breakers that brought trading to a halt at various points. Some of those semiconductor stocks, such as SK Hynix and Samsung Electronics, plunged nearly 11% and 9.5%, respectively. The index closed at a six-month low, down 8.1%. Meanwhile, Japan’s Nikkei 225 dropped by 4.9% on Thursday, after an 11% slump in memory chip maker Kioxia and a 10% drop in SoftBank, a big investor in ChatGPT owner OpenAI. The falls followed a slide on Wall Street during the previous day’s session, where the Nasdaq Composite fell by 1.9% and the S&P 500 dropped 1.1%, logging its worst performance since July. The sell-off comes after US…