South Korea's Kospi index plunged 6% as investors aggressively sold off AI-driven technology stocks following a brief, euphoric crossing of the 8,000-point threshold. The sharp reversal suggests the milestone triggered profit-taking at scale, with sentiment flipping from optimism to risk-off in a single session.
The sell-off reflects a broader tension playing out across global tech markets: AI-themed rallies have compressed valuations to levels where any hesitation in earnings delivery or macro headwinds can spark outsized corrections. South Korea's tech-heavy index, home to major semiconductor and electronics names, is particularly exposed to this dynamic.
For investors tracking the AI trade globally, the Kospi move is a cautionary data point — milestone-driven momentum can unwind fast when positioning is crowded and the catalyst for the next leg higher isn't yet visible.
CoinTelegraph