KOSPI drops 3.6% as chip stocks fall on U.S.-Iran tensions
South Korea's KOSPI index took a 3.6% hit on Wednesday, mostly because big-name chip stocks dropped sharply after fresh U.S.-Iran tensions.
The market had been riding high this year thanks to AI chip demand, but this week's selloff, coming right after Monday's 8.3% plunge, shows just how much the index depends on those tech giants.
Samsung, SK Hynix slide, volatility spikes
Samsung Electronics and SK Hynix, which together make up more than half of KOSPI, both slid 5%.
Their fall spooked investors worried about whether these stocks were overpriced after months of hype around AI chips.
On top of that, leveraged ETFs tied to these companies made things even shakier, sending volatility to record highs.
Oil rise, investors watch US inflation
Rising oil prices from tensions in the Middle East have made things even more uncertain for investors.
Now everyone's watching US inflation numbers for hints on where interest rates—and global markets—might go next.
The KOSPI fell as much as 3.6% on Wednesday.