Markets dip as South Korea's Kospi plunges amid AI worries
Global markets took a dip today, mostly because South Korea's Kospi index dropped sharply, almost 6%, after already falling more than 10% the previous day.
Investors are getting nervous about AI chipmakers, especially with SK Hynix shares tumbling nearly 10% despite strong profits.
Worries about competition from China and sky-high expectations around AI tech seem to be fueling the slide.
Finance minister apologizes for leveraged ETFs
The steep drop in Kospi has sparked criticism of leveraged single-stock exchange-traded funds, or ETFs, which some say make the market more unstable.
South Korea's finance minister even apologized for allowing these products.
Meanwhile, everyone's watching for earnings reports from Microsoft and Meta later today to see if the AI hype can keep going.
The Federal Reserve is also set to announce its rate decision soon, but no big surprises are expected there.
European stocks managed small gains in contrast to Asia's rough day.