Korea's market falls into a bear market as AI debt fears spread
The trouble is not chips. It is the cost of the money borrowed to buy them.
Di The desk, News · · 1 min di lettura
Tag: markets · coreweave · sk hynix · financing
Questo pezzo non è ancora in Italiano. Stai leggendo l'inglese.
- La notizia
- The trouble is not chips.
- Perché conta
- It is the cost of the money borrowed to buy them.
- Cosa è confermato
- The photograph is generated for this story.
Legato a una fonte citata. Non segnato come verificato. Associated Press: financial markets
The news
South Korea's Kospi fell 7.6 percent on Thursday and is now more than 20 percent below its September high, with SK Hynix down about 11 percent and Samsung Electronics down nearly 10 percent, Bloomberg and the Associated Press reported. Korea's exchange halted trading for 20 minutes.
Why it matters
The same week TSMC and ASML posted records, the companies that borrow to buy their output were repriced. This is the first time the AI selloff has pushed a national index into a bear market.
The details
The trigger was a hotter-than-expected US inflation print, Treasury yields above 5 percent and a selloff in CoreWeave bonds that pushed some yields toward 15 percent. The IMF had warned days earlier that hyperscalers now account for 10 percent of global investment-grade bond issuance, and that leverage could spread an AI correction to wider markets.
Nvidia chief executive Jensen Huang, speaking in Stockholm, said he was optimistic about CoreWeave, in which Nvidia holds about 10 percent. CoreWeave shares recovered later in the US session.
What we could not check
- Market moves are as reported on the day and may have changed since.
- We could not see CoreWeave's bond trading data directly.
Fonti
The photograph is generated for this story. It does not show the people named in it.