Global Markets Stumble as AI Hype Faces Reality Check

The impact hit Asian exchanges with particular force. South Korea’s KOSPI index cratered by more than 10%, a decline unseen since the 1997 Asian financial crisis. Shares of tech titans SK Hynix and Samsung Electronics bore the brunt of the liquidation as traders aggressively repriced assets that had been inflated by the recent AI frenzy.

In the United States, volatility gripped the technology sector, complicating the broader market outlook. While pockets of European strength emerged following isolated positive earnings reports, the underlying mood remained defensive. Investors are now bracing for potential interest rate adjustments from the Federal Reserve, while commodity prices—including Brent crude—softened under the weight of shifting geopolitical tensions involving Iran.