Tech Sell-Off Widens as South Korea Market Halts Trading

CNBC reported Monday that a widening tech sell-off has struck Asian markets hard. South Korea’s benchmark Kospi bore the heaviest damage, briefly plunging more than 8% before a temporary trading halt was triggered.

South Korea Takes the Brunt of the Tech Sell-Off

The Kospi’s sharp decline was driven largely by its two heaviest constituents. Samsung Electronics and SK Hynix fell roughly 5% and 2% respectively in Monday’s session. The pair represent more than 40% of the index. Their losses reflected a broader collapse in sentiment toward memory chipmakers and artificial intelligence-linked stocks across the region. Japan’s Nikkei also declined, extending a grim start to the trading week.

Also Read: What Is the Nikkei and Why Does It Matter to Global Investors?

Nasdaq Dealt Its Worst Day Since April 2025

Friday’s session in the United States set the tone. The Nasdaq Composite shed 4.18%, closing at 25,709.43. CNBC noted this marked the index’s steepest single-session decline in more than a year. The drop was concentrated in AI infrastructure names and major semiconductor companies, raising fresh questions about stretched valuations after months of parabolic gains. Finance professor Jeremy Siegel described the move as a predictable reaction to an overheated run-up in equities, though he stopped short of calling it the start of a prolonged downturn.

Also Read: Nasdaq Composite Index History and Performance

Geopolitics and Banking M&A Add to Market Anxiety

Monday’s session was further unsettled by fresh geopolitical turbulence. Israel and Iran exchanged direct strikes over the weekend, marking the most significant challenge yet to the fragile White House-brokered ceasefire. Oil prices moved sharply higher in response. U.S. President Donald Trump told reporters that Israeli Prime Minister Benjamin Netanyahu would have “no choice” but to accept a U.S.-mediated deal with Tehran.

On the corporate front, Italian banking M&A intensified over the weekend. Intesa Sanpaolo launched an all-share bid for Banca Monte dei Paschi di Siena, offering a 12.5% premium to Friday’s closing price. The move followed a separate $58 billion merger proposal from rival lender Banco BPM, sparking what analysts expect to be a competitive bidding contest for one of Italy’s oldest banks.

What Comes Next for Markets

Analysts remain divided on whether the technology rout represents a healthy correction or an early signal of something deeper. The combination of elevated valuations, renewed geopolitical risk, and rising oil prices creates a challenging backdrop for risk assets heading into the week. Investors will be watching U.S. futures closely when Wall Street reopens.

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