Global Tech Rout Hits KOSPI and Nasdaq Amid AI Anxiety

Global equity markets experienced a severe technology-led sell-off on June 23, 2026, after South Korea's KOSPI index plummeted nearly 10%, triggering a 20-minute circuit-breaker halt. The crash was driven by a sharp decline in semiconductor giants Samsung Electronics and SK Hynix, both of which lost over 12% of their value. This volatility was sparked by reports that SK Hynix was slowing the expansion of its HBM4 production to prioritize general-purpose DRAM, alongside South Korea's exclusion from the MSCI Developed Markets watchlist.

The contagion spread to Wall Street, where the Nasdaq Composite fell 2.2% and the S&P 500 dropped 1.4%. Investors questioned the sustainability of massive AI infrastructure spending and braced for hawkish monetary policy under new Federal Reserve Chair Kevin Warsh, with traders pricing in multiple interest rate hikes to combat rising inflation. Space Exploration Technologies Corp. also saw significant volatility, with its valuation briefly dipping below $2 trillion following the announcement of a major bond offering to fund AI ambitions.

Simultaneously, geopolitical tensions eased as the United States and Iran reached an interim peace deal in Switzerland. Donald Trump announced the reopening of the Strait of Hormuz and a 60-day waiver on Iranian oil sanctions in exchange for nuclear program inspections. Markets began a slight recovery on June 24, with Samsung shares rebounding nearly 10% on reports of a potential buyback, while investors turned their attention to Micron Technology's upcoming earnings report as a barometer for AI demand.