S&P 500 and Nasdaq Slide as Chip Sell‑Off Deepens: AI Financing Fears Rise

South Korea’s memory‑chip giants SK Hynix and Samsung Electronics plunged by 14 % and 13 % respectively, while Nasdaq‑100 futures fell 0.9 %, S&P 500 slipped 0.2 %, yet Dow Jones Industrial Average futures edged up 0.1 %.

New Front in the Chip Crisis

The Kospi index dropped over 10 % as investors reacted to a slowdown in AI demand and supply‑chain bottlenecks.

■SK Hynix: -14 %

■Samsung Electronics: -13 %

■Kospi: -10.84 %

AI Financing Tunnel: Nvidia Meets OpenAI

Nvidia’s plan to back OpenAI with a $250 billion funding stop‑gap has stoked fears of a circular financing structure, while China’s tightening AI gap dampens U.S. prospects.

■Nvidia: -0.9 %

■OpenAI: private‑sector investor

■AI trade sentiment: heightened

Geopolitical Ease Dampens Energy Prices

The halt in U.S.–Iran fighting has pushed crude futures CL=F down 2.18 %, signaling a softening in energy markets.

■Crude: -2.18 %

■Geopolitical developments: easing

Fed’s Decision Test

The Federal Reserve’s two‑day policy meeting sees markets betting on a hold, though a hike remains on the table.

■Fed meeting: 2 days

■Rate outlook: hold or hike

Earnings Calendar: Companies in the Spotlight

SK Hynix’s results at 8 pm ET will shed light on the memory trade amid AI anxieties. Other major names include Visa (V), Coca‑Cola (KO), Boeing (BA), Ford (F), and PayPal (PYPL).

Markets are poised to react to the convergence of the chip crisis and AI financing worries. The uncertainty surrounding the Fed’s decision further amplifies long‑term risk perception, potentially spiking volatility in the Asia‑Pacific region.