The S&P 500 Index is down 1.26%, the Dow Jones Industrial Average has decreased by 0.30%, and the Nasdaq 100 Index is down 2.69%. This selloff is attributed to investor concerns over high valuations in the semiconductor and AI sectors. South Korea’s Kospi index witnessed a significant drop of over 10%, with foreign investors offloading more than $2.5 billion in shares, particularly affecting SK Hynix and Samsung Electronics.
Global markets are experiencing wide declines, beginning with Asia, where Japan’s Nikkei fell by 3.55%. In the U.S., the June S&P manufacturing PMI rose to 55.7, higher than the expected 54.6, providing slight support amidst the slump. The markets are currently factoring in a 36% probability of a 25 basis point rate hike at the upcoming Federal Open Market Committee meeting.
In the U.S., semiconductor stocks are among the hardest hit, with the iShares Semiconductor ETF down more than 7%. Companies such as Sandisk, Micron Technology, and ON Semiconductor reported declines of over 11%. Meanwhile, interest in T-notes has increased, evidenced by a slight decrease in the 10-year T-note yield to 4.487% as investors seek safer assets amidst market volatility.
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