Seoul market plunges as U.S. tech stocks tumble amid AI investment worries
South Korean shares opened sharply lower on Monday after a technology-focused sell-off on Wall Street, driven by doubts over AI spending returns.
On Monday, the Korea Composite Stock Price Index opened at 5,488.41, down 179.64 points or roughly 3.17%, after Wall Street’s tech sector suffered a sharp sell-off. The decline erased the 2.05% gain the index posted on Friday, which had broken a seven-session losing streak. In the United States, the Dow Jones Industrial Average slipped 0.34% while the Nasdaq Composite dropped 2.14%, reflecting broader concerns about the profitability of heavy AI infrastructure investment.
Market participants are also cautious ahead of earnings reports from major companies like Tesla and Meta Platforms scheduled for the week, and they are watching the November 3 U.S. midterm elections and the outlook for interest rates. Analysts highlighted the combination of earnings uncertainty and political factors as key drivers of the Korean market’s volatility.
Why it matters
The slide shows how U.S. tech market moves and AI investment doubts can quickly affect South Korean equities.
How this story developed
- Oct 13 Asian markets tumble as US chip slump drags South Korean shares below 3%
- Oct 14 US semiconductor index fell 2.7% and the Nasdaq 100 slipped 0.7%, widening the regional decline.
- Oct 15 CoreWeave’s shares dropped 6% and its 2031 bond yields rose above 16% as investors fret over its $50 billion debt load and AI-related borrowing.
- Oct 16 CoreWeave rebounded 6% after a steep decline, lifting broader semiconductor shares.
- Oct 18 CoreWeave’s bond yields rose above 16 % and default‑insurance costs jumped to about 1,000 basis points.
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