Amid uncertainty surrounding interest rate outlooks and market concerns over the sustainability of artificial intelligence-related expenditures, the previously tech-led rally paused, causing South Korean stocks to plummet sharply.
The Korea Composite Stock Price Index (KOSPI) fell 4%, marking its largest single-day decline since November 21. Samsung Electronics and SK Hynix, the chip giants that have driven South Korean stocks to achieve globally leading gains since the beginning of last year, both dropped more than 4%.
Multiple factors prompted investors to reduce holdings in previously high-flying stocks, including concerns over Kevin Warsh's nomination as the next Federal Reserve Chair and sharp fluctuations in metal prices. Further dampening market sentiment, NVIDIA CEO Jensen Huang stated that a plan to invest $100 billion in OpenAI was "never a formal commitment," raising new doubts about the scale of future capital investment in the AI sector.
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