Global Markets Plummet in Massive Sell-Off as Tech Stocks Take a Nosedive
Global stock markets plummeted on Tuesday, driven by steep declines in tech companies, particularly those at the forefront of artificial intelligence and chip making. The sell-off, which started in the US on Monday, reverberated worldwide, with Asian markets hit hardest.
In South Korea, the main index plunged 10 percent, triggering a 20-minute trading halt. The country's two largest memory chip makers, Samsung Electronics and SK Hynix, saw their shares plummet more than 12 percent. The surge in South Korea's stock market over the past year was largely fueled by these companies, whose semiconductors are critical to AI systems.
The decline in tech stocks also affected US companies, with Alphabet and Amazon continuing to fall in premarket trading. SpaceX's stock slid further, shedding over 20 percent of its value in the past three trading sessions.
According to Alexander Redman, chief equity strategist at CLSA, such a big one-day drop would have caused panic in the past, but it is now viewed as a regular market feature. "It's unnerving to see this kind of volatility," Redman said, describing the market as "very, very frothy."
In South Korea, the main index plunged 10 percent, triggering a 20-minute trading halt. The country's two largest memory chip makers, Samsung Electronics and SK Hynix, saw their shares plummet more than 12 percent. The surge in South Korea's stock market over the past year was largely fueled by these companies, whose semiconductors are critical to AI systems.
The decline in tech stocks also affected US companies, with Alphabet and Amazon continuing to fall in premarket trading. SpaceX's stock slid further, shedding over 20 percent of its value in the past three trading sessions.
According to Alexander Redman, chief equity strategist at CLSA, such a big one-day drop would have caused panic in the past, but it is now viewed as a regular market feature. "It's unnerving to see this kind of volatility," Redman said, describing the market as "very, very frothy."
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