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Major technology indices have fallen sharply worldwide. South Korea's Kospi Index has dropped 10% from its record high, Nasdaq 100 futures fell 2.6%, and S&P 500 futures slid 1.4%. Chip stocks took the steepest losses, with SK Hynix and Samsung Electronics both down more than 10% in Seoul, and Intel and Micron Technology leading US chipmaker declines in premarket trading. Memory stocks, which have posted triple-digit gains this year, were among the sharpest decliners as investors appeared to take profits after a strong run.
Why it matters
Investors are pulling back from technology shares over concerns about stretched valuations and whether large cloud providers such as Alphabet can justify their massive AI spending. A less accommodative Federal Reserve backdrop is also adding pressure to investor appetite for risk. Memory chip stocks, despite their strong performance this year, are vulnerable to profit-taking when sentiment shifts, signaling broader caution about the sustainability of recent tech gains.
What to watch
Micron Technology's quarterly results on Wednesday will be closely watched; the stock has rallied more than 300% since January, making it this year's standout performer in the Philadelphia Semiconductor Index. SpaceX fell 4.5% and was poised to trade below its first-day opening price of $150, while Chinese equities in Hong Kong entered a bear market.
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