Seoul shares dip over 3 pct amid escalating AI woes
SEOUL, Nov. 3 (Yonhap) -- South Korean stocks plunged more than 3 percent Tuesda...
South Korean stocks experienced a sharp decline of over 3% on Tuesday, primarily due to significant investments in artificial intelligence (AI) causing worries. The Korean won strengthened against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) fell to 5,648.79, down 210.29 points, or 3.59%, after initially sliding 2.46%.
Tech and AI-related shares on Wall Street remained unstable, causing the Nasdaq Composite to drop 1.07% and the S&P 500 by 0.51%. The PHLX chip index also saw a decrease of 3.4%, following a 7.2% plunge on Friday. Investors expressed doubts about the effectiveness and profitability of the excessive AI infrastructure spending, as indicated by recent disappointing earnings reports from major tech companies.
Additionally, investors were cautious ahead of the U.S. midterm elections, where President Donald Trump's Republican Party faces a tough fight to maintain its majority in Congress.
Written by urgent.news from Yonhap News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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