Seoul shares tumble over 4 pct on tech losses amid lingering AI concerns

Seoul's stock market experienced a sharp decline of over 4 percent on Thursday, primarily driven by losses in technology shares and ongoing concerns regarding the profitability of artificial intelligence investments. The Korea Composite Stock Price Index (KOSPI) plummeted by 4.58 percent, or 301.88 points, to close at 6,296.38, after initially falling to a low of 6,238.32.

The index had previously surged by 1.62 percent and 3.76 percent on Tuesday and Wednesday, respectively, as investors' worries about AI profitability began to ease. However, the KOSPI opened lower by 1.81 percent, and the sell-side sidecar was activated by the bourse operator for five minutes at 10:18 a.m., interrupting automated trading of KOSPI-listed shares.

In the United States, the tech-heavy Nasdaq Composite Index suffered a 0.83 percent decline on Thursday, fueled by uncertainties surrounding the financial viability of extensive AI infrastructure investments. Alphabet and Advanced Micro Devices, two prominent tech companies listed on the Nasdaq, were among the companies that saw their stock prices drop.

Despite these negative market movements, the Dow Jones Industrial Average managed to rise by 0.49 percent, reaching a new record high, as rising tensions in the Middle East provided a temporary boost to investor sentiment.