Stocks dip sharply lower as AI leaders call for industry slow down

Seoul stocks started down sharply on Tuesday, plummeting as investors dumped major tech companies following comments from artificial intelligence (AI) leaders advocating for a slowdown in the AI industry. The Korea Composite Stocks Price Index (KOSPI) fell 25.12 points, or 0.38 percent, to 6,659.25. Overnight, American stocks continued to slide on a decline in tech shares, as market participants reacted to remarks from AI executives urging a more cautious approach to AI development to mitigate potential risks.

The S&P 500 dipped 0.48 percent, while the tech-heavy Nasdaq experienced a 0.56 percent decrease. The surge in U.S. bond yields also contributed to a more cautious investor sentiment, with the return on a benchmark 10-year Treasury reaching a critical level of 5 percent, a mark not seen since October 2023. The aftermarket, which commenced trading on Monday, saw trading volume of 1.87 trillion won ($1.39 billion), representing about 8.03 percent of the overall trade volume during official market hours, according to the Korea Exchange.