Volatility In Global Chip Stocks Likely To Continue

The comments from Nigel Green come as the turmoil spread from Wall Street to Asia on Thursday. South Korea's Kospi closed down 7.57% after an 8% plunge triggered a 20-minute trading halt, and Japan's Nikkei 225 sank almost 5%.

Asia took the heaviest blow with the Kospi's seventh straight loss, its longest losing run since September 2024, leaving the index more than 16% lower in a month. Just 52 of the 916 shares traded in South Korea rose on Thursday.

Wednesday's US inflation figures lit the fuse, showing consumer prices rising at their fastest monthly pace in five months and lifting bets on further Fed hikes. AI funding fears deepened when the bonds of a heavily indebted AI cloud provider slid towards distressed levels.

Strong results from some of the sector's biggest names have done little to steady the market. Fresh worries over Chinese competition in memory chips have added to the pressure on Asia's tech-heavy markets.

Fed policymakers meet on October 27 and 28, less than a week before the November 3 midterms, with their final meeting of 2026 on December 8 and 9.

Nigel Green believes the Fed is likely to hold this month and raise rates again in December.

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