The tech-heavy Nasdaq Composite dropped 2.6% overnight, while the PHLX Semiconductor Index plummeted 6.7%, marking their steepest declines since June. This volatility spilled into Seoul, where the Kospi tumbled as much as 4.1% during Friday’s session. The index is now trending toward its fourth consecutive week of losses.

Local tech giants faced significant pressure as market confidence wobbled. Shares of Samsung Electronics fell by 5.1%, while SK Hynix experienced extreme volatility, dropping 4.2% before attempting a partial recovery. The cooling appetite for AI-related assets has already disrupted corporate strategy; SK Hynix confirmed it is abandoning plans for a U.S. listing of its subsidiary, Solidigm, citing the shifting financial environment.