South Korea’s Kospi share index falls nearly 7%, other Asian shares also mostly lower - AP News

What the report says

The Associated Press reported that technology-led selling hit global markets Wednesday, with South Korea’s Kospi among the hardest hit as investors continued to dump chipmaking shares. AP said the Seoul index fell about 6%, after a 10.8% drop the previous day, reducing its year-to-date gain to 34.4%. SK Hynix, a major memory-chip maker closely tied to artificial-intelligence demand, dropped 9.6% in Seoul despite reporting record quarterly revenue and profit, as its revenue growth fell short of analysts’ expectations.

The pressure spread to Wall Street, where the S&P 500 declined 1.5%, the Dow Jones Industrial Average lost 1,153 points, or 2.2%, and the Nasdaq composite fell 1.7%, leaving it 9.8% below a record set last month. Nvidia fell 3.6%, while semiconductor equipment company KLA dropped 10.8% even after results beat forecasts, reflecting high expectations after a sharp rally earlier in the year.

Markets were also reacting to oil and interest-rate uncertainty. AP reported that Brent crude jumped 7.3% to $88.09 a barrel after fighting resumed in the war with Iran, raising concerns about global oil flows. The Federal Reserve left its main interest rate unchanged, though three policymakers favored an increase. Chair Kevin Warsh reiterated the central bank’s focus on bringing inflation back to 2% while offering limited guidance on future rate moves.

Elsewhere in Asia, AP said markets were mixed: Hong Kong’s Hang Seng rose 2%, while Japan’s Nikkei 225 fell 1.5%. The selloff matters because AI-linked stocks have been a major driver of recent market gains, making any doubts about future growth significant for broader indexes.