Global AI-Chip Rout Drags The Nasdaq Down Nearly 4% After Korea's KOSPI Hits A Circuit-Breaker

(MENAFN- Investor Ideas) ), a leading investor news and research portal, reports on a sharp risk-off session as a global rout in AI and semiconductor stocks dragged equity markets lower from Seoul to New York.

The selloff

A selloff in AI and semiconductor stocks that began in Asia spread to U.S. mega-cap tech. Per Yonhap News Agency, the KOSPI plunged 9.99% to close at 8,203.84, with the Korea Exchange triggering circuit-breakers twice during the session - including an index-wide 20-minute halt around 2:33 p.m. local time - as SK Hynix and Samsung tumbled about 12.47% and 12.31%. By about 3:27 p.m. ET, the Nasdaq was 25,773.73 (down 3.94%), the S&P 500 7,393.08 (down 2.52%) and the Dow 50,873.80 (down 1.33%), with the VIX up about 33% to 20.44 - figures that are live intraday quotes. Among the hardest hit were Intel (down about 10.6%), Nvidia (down about 6% and slipping below a roughly $5 trillion market value intraday), Meta (down about 5.8%) and Tesla (down about 6.6%), with Planet Labs (down about 25%) and POET Technologies (down about 21%) among the worst decliners. Wedbush's Dan Ives described it as a white-knuckle moment for tech stocks but framed it as a pullback after a powerful rally.

A 10% circuit-breaker in Korea translating into a near-4% Nasdaq drop shows how tightly the AI trade now links memory chips in Seoul to mega-cap tech in New York.

SpaceX adds to the AI-spend anxiety

SpaceX (Nasdaq: SPCX) extended its post-IPO slide as it confirmed its first-ever bond sale. Per an SEC filing, SpaceX is offering senior unsecured notes to institutional buyers to repay a bridge loan, with Bloomberg reporting a roughly $20 billion target size and maturities of five to 30 years arranged by Goldman Sachs, Morgan Stanley, JPMorgan, BofA and Citigroup - what Bloomberg called the start of a borrowing spree to fund its AI ambitions after its record $75 billion IPO. The stock fell 16.4% Monday to $154.60 and slid further Tuesday, leaving it about 14% above its $135 IPO price and about 31% below its$225.64 high.

Across the tape

The risk-off mood hit nearly everything in InvestorIdeas' coverage. Oracle disclosed about21,000 AI-related job cuts, precious metals sold off asFed-hike bets firmed, Tesla's $5 billionNatPower storage deal couldn't keep its stock green, First Quantum'sCobre Panama audit kept a copper restart in play, Bitcoin brokebelow $63,000, and Magna Mining graduated to the TSX with ahigh-grade Sudbury hit.

The week ahead

Micron fiscal Q3 - Wednesday, June 24 after the close; the biggest near-term AI-memory catalyst given the rout, with Zacks consensus around $19.72 EPS on $34.8 billion in revenue and Micron's own guidance near $33.5 billion and an 81% gross margin, with focus on HBM4 and FY2027. AMC Entertainment - a $200 million registered direct equity offering (95,250,000 shares at $2.10) expected to close June 24, with proceeds to redeem $125.5 million of 6.125% notes due 2027. U.S. May PCE inflation - Thursday, June 25, the Fed's preferred gauge, alongside final Q1 GDP and weekly jobless claims. University of Michigan final June consumer sentiment - Friday, June 26. Bank of Canada rate decision - Wednesday, July 15; the bank held its rate at 2.25% on June 10.

Disclosure: Any share, index, commodity or crypto prices referenced are intraday or premarket, captured at the timestamps in the source data, and are not closing levels; several are live quotes that will move into the close and should be confirmed at publication. This article is editorial market commentary and interpretation, not investment advice. Forecasts, analyst views, deal terms, and company figures are attributed to their named sources.

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