Semiconductor declines and geopolitical tensions weigh on tech, while broader indexes show modest losses amid shifting investor focus.
The Nasdaq Composite fell 0.7% by mid-morning as chip stocks extended losses following a historic sell-off in South Korea. The S&P 500 and Dow Jones Industrial Average declined 0.3% and 0.2%, respectively, as investors pivoted away from capital-intensive tech sectors.
South Korea’s KOSPI index plunged 5.5%, triggering circuit breakers for the 35th time this year—surpassing the 26 halts during the 2008 financial crisis. U.S.-listed SK Hynix (SKHY) dropped 8.4%, falling below its $149 IPO price, while Micron Technology (MU) slid 4.3%. Only a few mega-cap stocks, including Apple (AAPL), posted gains.
Geopolitical tensions added pressure after a proposal to impose a 20% toll on ships in the Strait of Hormuz. The divergence between tech and broader markets reflects shifting investor sentiment toward less capital-intensive sectors.