Overview
- Global tech and chip stocks weakened after a wave of selling that intensified on Thursday when U.S. inflation readings revived concerns about higher interest rates.
- Major chip makers signaled caution about demand, with TSMC’s CEO noting higher component prices and macro uncertainty that put additional pressure on semiconductor shares.
- Analysts flagged the vulnerability of 'neocloud' providers after Gartner warned most could fail by 2030 and debt‑heavy public firms such as CoreWeave saw steep share drops.
- Asian markets fell sharply, led by a 7.6% drop in South Korea’s Kospi and double‑digit losses for SK Hynix and Samsung, triggering trading halts and wider regional stress.
- U.S. investors rotated into defensive sectors like health care and basic materials, which helped the Dow, S&P 500 and Nasdaq close higher despite ongoing doubts about AI funding and growth prospects.