Key Takeaways
- • South Korea's benchmark KOSPI fell more than 7 percent on Thursday, its seventh straight daily decline, and has shed about a fifth of its value over that stretch, according to The New York Times.
- • Semiconductor shares led the sell-off in Asia: SK Hynix fell 11 percent, Samsung dropped more than 9 percent, TSMC slid 4 percent and SoftBank lost more than 9 percent.
- • Investor concern centers on how technology companies will finance their large artificial intelligence spending plans, with CoreWeave down about 7.5 percent at the U.S. open.
- • The declines followed the S&P 500's steepest daily drop in months on Wednesday, which came after U.S. inflation data ran hotter than economists expected.
- • European chip stocks including ASML, Infineon and STMicroelectronics each fell more than 5 percent in early trading.
Summary
Technology stocks extended their losses on Thursday, October 15, as a sharp decline in semiconductor shares intensified investor concern over how companies will fund their enormous artificial intelligence spending plans, according to The New York Times. The sell-off followed the S&P 500's steepest daily decline in months on Wednesday, after data showed U.S. inflation running hotter than economists expected.
The pressure was most acute in Asia. South Korea's benchmark KOSPI tumbled more than 7 percent, marking its seventh straight daily decline and a loss of about a fifth of its value over that period. The index has become a bellwether for the A.I. boom. In South Korea, SK Hynix plunged 11 percent and Samsung dropped more than 9 percent. Taiwan's TSMC slid 4 percent, and Japan's SoftBank, a major investor in artificial intelligence, fell more than 9 percent. Other major Asian markets also declined sharply.
In the United States, the tech-heavy Nasdaq was down more than 1 percent at the open. CoreWeave, which sells computing power to large A.I. companies, extended losses it had incurred the previous day on both its stock and bonds, trading down around 7.5 percent at the opening bell. In Europe, chip makers and related companies suffered steep declines, with ASML, Infineon and STMicroelectronics each losing more than 5 percent in early trading. European tech shares wobbled more broadly.
Bond yields fell in choppy trading, oil prices retreated, and gasoline prices remained high, the Times reported. Publisher context characterizes the sell-off as reflecting broader doubts about whether heavy AI spending is justified by returns, with some analysts urging investors to look beyond spending announcements to how AI companies actually generate revenue.
The pressure was most acute in Asia. South Korea's benchmark KOSPI tumbled more than 7 percent, marking its seventh straight daily decline and a loss of about a fifth of its value over that period. The index has become a bellwether for the A.I. boom. In South Korea, SK Hynix plunged 11 percent and Samsung dropped more than 9 percent. Taiwan's TSMC slid 4 percent, and Japan's SoftBank, a major investor in artificial intelligence, fell more than 9 percent. Other major Asian markets also declined sharply.
In the United States, the tech-heavy Nasdaq was down more than 1 percent at the open. CoreWeave, which sells computing power to large A.I. companies, extended losses it had incurred the previous day on both its stock and bonds, trading down around 7.5 percent at the opening bell. In Europe, chip makers and related companies suffered steep declines, with ASML, Infineon and STMicroelectronics each losing more than 5 percent in early trading. European tech shares wobbled more broadly.
Bond yields fell in choppy trading, oil prices retreated, and gasoline prices remained high, the Times reported. Publisher context characterizes the sell-off as reflecting broader doubts about whether heavy AI spending is justified by returns, with some analysts urging investors to look beyond spending announcements to how AI companies actually generate revenue.
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