Apple Price Hikes Help Trigger 8% Kospi Plunge, Chip Stocks Fall 10%
AAPL•Apple's product price hikes helped trigger South Korea's Kospi to plunge 8% after hitting a record above 9,000, sending Samsung Electronics and SK Hynix down over 10%. Investors also reacted to reports of a delayed OpenAI IPO and Samsung's planned 1,000 trillion won spending package over the next decade.
1. Kospi Records Sharp Volatility
South Korea’s main index vaulted above 9,000 before reversing course sharply, falling 10% intraweek and then plunging 8% on Friday to trigger a market-wide circuit breaker. This swing reflects extreme sentiment shifts in the AI trade that fueled the rally earlier in the year.
2. Apple Product Price Hikes Trigger Concerns
Investors pointed to higher prices on Apple’s products as a catalyst for concerns about slowing consumer demand that rippled through the semiconductor sector. The pullback in chip stocks underscored fears that tech hardware upgrades may face pushback.
3. Investment Plans and IPO Delay Add Pressure
Market participants also weighed reports that OpenAI’s IPO could be postponed alongside Samsung’s announcement of a 1,000 trillion won investment over the next decade. These developments stoked worries about funding needs and future cash flows for major AI chip producers.
