Korean stock volatility comes to America. Can Wall Street take the heat?
ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThe intense volatility rocking South Korea’s chip-heavy stock market has come to America, but Wall Street has suffered only modest losses in response. These “mom and pop” investors were pulled in by the extraordinary AI boom, and many have been caught out by the rapid snapback.Most longer-term buyers are still sitting on substantial gains, of course, with the KOSPI still up 55 per cent this year, following an annual gain of 75 per cent last year. But the same cannot be said of short-term punters.
- ▪ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThe intense volatility rocking South Korea’s chip-heavy stock market has come to America, but Wall Street has suffered only modest losses in response.
- ▪These “mom and pop” investors were pulled in by the extraordinary AI boom, and many have been caught out by the rapid snapback.Most longer-term buyers are still sitting on substantial gains, of course, with the KOSPI still up 55 per cent th
- ▪But the same cannot be said of short-term punters.
Opening excerpt (first ~120 words) tap to expand
ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThe intense volatility rocking South Korea’s chip-heavy stock market has come to America, but Wall Street has suffered only modest losses in response. Can this continue, or will the slump in semiconductors and vulnerability among highly leveraged investors cause serious damage in the U.S. as well?The benchmark KOSPI index - heavily concentrated in firms benefiting from the artificial intelligence boom, most notably the trillion-dollar megacaps Samsung and SK Hynix - is down more than 30 per cent from its peak only a month ago, and volatility has soared.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
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