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Nasdaq down 1.2% and Kospi off 5.8% on Friday; AI spending, chip stock weakness and circuit‑breaker halts spark volatility across global equity markets.
A sharp 1.2% drop in the Nasdaq on Friday marked the latest leg of a week‑long slide, while South Korea’s Kospi fell 5.8% after a circuit‑breaker pause, underscoring how AI‑related spending and chip‑stock weakness are reverberating through global equity markets.
| At a glance | |
|---|---|
| Nasdaq change | –1.2% |
| Kospi change | –5.8% |
| S&P 500 weekly trend | –1% (projected loss) |
| Sector impact | Tech down 1%; Healthcare up 7% |
The Nasdaq’s decline follows a “massive sell‑off” in South Korea, where the Kospi’s 5.8% fall triggered a 20‑minute trading halt—the third circuit‑breaker activation this week and the fifth this year【1】. The sell‑off is tied to mounting AI‑infrastructure costs: firms such as Apple raised device prices after a memory‑chip shortage, sending its stock down more than 6%【1】, while chipmakers like Micron and AMD saw their shares fall 4% and 2% respectively after a New York Times report that OpenAI may delay its IPO due to volatile AI‑related markets【2】. JPMorgan traders warned that the IPO delay could “slow the pace of infrastructure spending”【2】, adding to investor caution.
While the Nasdaq and Kospi slumped, the broader U.S. market showed mixed signals. The S&P 500 rose 0.1% on the day but is on track for a >1% weekly loss, and the Dow Jones is up 0.6% for the week【2】. The rotation away from high‑growth tech into defensive sectors is evident: the S&P 500 information‑technology segment fell 1% on Friday, whereas healthcare stocks surged—Eli Lilly up 7% and Johnson & Johnson up more than 3%【2】. Consumer staples, financials and utilities also posted gains, cushioning the overall market decline.
Rising bond yields and the prospect of another Federal Reserve rate hike heighten pressure on tech stocks, which are sensitive to borrowing costs【1】. At the same time, the AI boom is inflating demand for high‑performance chips, pushing component prices “through the roof” and creating a K‑shaped industry where chipmakers thrive while AI‑dependent firms see profit margins erode【1】. Analysts note that while the long‑term AI case remains “compelling,” investors are becoming more selective about which companies can justify current valuations【4】.
The latest tech‑driven pullback highlights how rapidly shifting expectations around AI spending can ripple through equity markets, testing the resilience of both growth‑oriented and defensive sectors as investors balance innovation costs against earnings realities.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 4 outlets · Jun 26, 2026 · How we report
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