Key facts
- SK Hynix shares fell as much as 17%.
- SK Hynix reported record second-quarter earnings.
- SK Hynix's earnings missed analyst forecasts.
- The Korea Exchange activated a sell-side sidecar.
- Program trading was suspended for five minutes.
- The Nasdaq Composite fell into correction territory.
- The Nasdaq Composite is down over 10% from its recent high.
- Investor concerns focus on AI spending sustainability and high valuations.
- The KOSPI index rose 1.09% to 6,089.11 on July 29, 2026.
- The KOSPI experienced an 11% dip prior to the rebound.
SK Hynix shares plummeted as much as 17% after the South Korean chipmaker reported record second-quarter earnings that failed to meet analyst expectations. Despite strong year-over-year performance, the miss triggered a significant sell-off in the company's stock, impacting broader Asian tech markets. The Korea Exchange responded to the market turbulence by activating a sell-side sidecar, which led to a five-minute suspension of program trading. This event occurred as the Nasdaq Composite index entered correction territory, marking a decline of over 10% from its recent peak. The intensified sell-off in chip stocks is attributed to growing investor concerns regarding the sustainability of artificial intelligence (AI) spending and the high valuations of major technology firms. The KOSPI index, however, saw a rebound, opening higher on Wednesday, July 29, 2026, with a 1.09% rise to 6,089.11, driven by bargain hunting following an earlier 11% dip.