Key facts
- Chip stocks have dropped, indicating potential fatigue in the AI rally.
- South Korea's KOSPI share index dropped by 5% today.
- Investors are questioning the sustainability of recent gains in technology stocks.
Sentiment in risk markets across Asia has soured as investors worry that the rally in technology stocks may be stalling. South Korea's KOSPI share index has dropped by 5% today, trimming its gains in 2026 to around 90%. Questions are being asked more intently about whether some of the blockbuster trades of 2026 have had their time in the sun and are due for consolidation, and whether this modest pullback could evolve into something more pronounced. This follows a drop in chip shares on Wall Street yesterday, which is rippling across markets.