Remember when spending billions on chip fabs and AI data centers was the hottest thing in tech? That was last week. By Monday morning, investors had moved on to companies that make money without building small cities full of servers.
The tech-heavy Nasdaq Composite (NASDAQINDEX: ^IXIC) index fell 0.7% by 11:16 a.m. ET, while the broader S&P 500 (SNPINDEX: ^GSPC) and Dow Jones Industrial Average (DJINDICES: ^DJI) held their losses to 0.3% and 0.2%, respectively.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
^DJI data by YCharts
Two themes dominated this morning’s headlines. Chip stocks extended losses following a historic collapse in Korean markets, while President Trump proposed charging a 20% toll on ships passing through the Strait of Hormuz.
Circuit breakers in Seoul and renewed Hormuz blockage
The semiconductor sell-off began overnight in Seoul, where SK Hynix plunged 15% in its worst day on record. The broader KOSPI index fell 5.5%, triggering circuit breakers for the 35th time this year. That’s more than the 26 times Korean markets halted trading during the entire 2008 financial crisis.
U.S.-listed shares of SK Hynix (NASDAQ: SKHY) fell 8.4%, dropping below Friday’s $149 IPO price. American memory chip rival Micron Technology (NASDAQ: MU) fell 4.3%, connecting the Korean crash to U.S. indexes. Most semiconductor stocks are down and only a handful of software names are trending up. As a result, 17 of the 20 largest Nasdaq Composite moves are printed in red ink right now.
Image source: Getty Images.
Apple (NASDAQ: AAPL) gained 0.9%, one of the few mega-caps providing bullish support, but its $44 billion in additional market cap couldn’t offset larger cap losses from Micron, Nvidia, and Space Exploration Technologies.
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