South Korea’s benchmark index drops over 10%, dragging Micron and semiconductor ETFs lower despite strong revenue guidance.
South Korea’s KOSPI index collapsed 10.84% overnight, led by a 13.39% drop in Samsung and a 14.65% decline in SK Hynix. The selloff rippled into U.S. premarket trading, with Micron Technology (MU) down 5.4% and the VanEck Semiconductor ETF (SMH) off 2.9%.
Micron reported fiscal Q3 revenue of $41.46 billion and guided Q4 revenue to $50.0 billion ± $1.0 billion, signaling strong AI-driven memory demand. Despite the guidance, MU shares have fallen 20.49% over the past month. The iShares MSCI USA Momentum Factor ETF (MTUM) also extended losses, down 1.93% premarket after a 1.33% decline yesterday.
DOW futures edged up 0.21% as investors sought safety, while Nasdaq futures slipped 0.84%. The broader chip sector underperformed, with SMH holding a 9.39% weighting in MU, amplifying the ETF’s decline.