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AI Valuation Fears Trigger Kospi Halt, Fed Hikes Loom

6/23/2026

Summary

Story summary

AI-related turbulence triggered a circuit-breaker pause on South Korea’s Kospi, showing fragile confidence in tech stocks.
Traders cited inflated AI valuations and Federal Reserve (Fed) rate hikes in 2026 as the sell-off’s cause.
New Fed Chairman Kevin Warsh pledged tighter inflation control, prompting markets to anticipate higher interest rates.
Markets saw the Nasdaq fall over 2% and the Kospi drop 10%, with Samsung and SK Hynix down more than 12%.

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Story summary

AI-related turbulence triggered a circuit-breaker pause on South Korea’s Kospi, showing fragile confidence in tech stocks.
Traders cited inflated AI valuations and Federal Reserve (Fed) rate hikes in 2026 as the sell-off’s cause.
New Fed Chairman Kevin Warsh pledged tighter inflation control, prompting markets to anticipate higher interest rates.
Markets saw the Nasdaq fall over 2% and the Kospi drop 10%, with Samsung and SK Hynix down more than 12%.