Global Markets Plunge as Semiconductors and Oil Collapse

Global financial markets are experiencing extreme volatility driven by a massive valuation collapse in semiconductors and a severe selloff in oil. Brent crude is currently undergoing its worst four-day selloff since the 2020 COVID crash, fueled by systematic selling pressure. In the semiconductor sector, forward P/E multiples have dropped more than 40% over two months, leading to a massacre of memory stocks. SK Hynix plunged 53% and Samsung Electronics declined 40% from their 2026 peaks.

While the S&P 500 in the United States has remained flat since May, analysts suggest the upcoming midterm elections may provide a historical tailwind for equities. In Asia, the Government of China is attempting to curb a 20–30% market correction. On November 2, Chinese authorities held regulatory meetings to stabilize equities by expanding capital-market support tools and improving buyback financing to establish a policy floor.

Financial institutions are monitoring the turmoil for signs of market capitulation. Trading desks have identified a rotation from semiconductors toward hyperscalers, while others track sentiment indicators to determine if the selloff has reached a bottom.