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Tech market sell-off deepens amid fears over US inflation and AI debt

An accelerating sell-off of AI-linked shares has hit global markets, as fears over rising inflation and future interest rate hikes spooked traders already wary of the heavily indebted sector. South Korea’s benchmark Kospi 200 index, which is heavily skewed towards the companies that make memory chips, fell more than 8% overnight to a six-month closing low, triggering circuit breakers that brought trading to a halt at various points. Some of those semiconductor stocks, such as SK Hynix and Samsung Electronics, pl…

By the Truvace desk2 min read1 sourceJournalismTRV-2026-1426· cite & verify
Tech market sell-off deepens amid fears over US inflation and AI debt

In brief

Shares tied to artificial intelligence fell sharply on 15 October 2026. South Korea's Kospi 200 dropped 8.1% to a six-month low, and circuit breakers halted trading at points. Japan's Nikkei 225 fell 4.9%, and the Nasdaq Composite and S&P 500 had already slid in the previous US session.

The episode matters because it ties AI-sector valuations to broader macroeconomic conditions. Higher-than-expected US inflation raised expectations of further Fed rate rises, while the IMF warned that an AI correction could spread across global markets. The article does not say how long the sell-off will last or how large any wider damage might be.

Main points

  1. South Korea's Kospi 200 fell 8.1% to a six-month closing low, with SK Hynix down nearly 11% and Samsung Electronics down about 9.5%.
  2. Japan's Nikkei 225 dropped 4.9%, with Kioxia down 11% and SoftBank, a big investor in OpenAI, down 10%.
  3. US inflation rose to 3.7% in September, and investors now expect fresh Federal Reserve rate increases.
  4. The IMF said an AI correction could have global consequences, with Asian markets most exposed after the US.

The problem

AI-linked shares fell sharply across Asia and the US, with memory chip makers hit hardest, as inflation fears and the sector's heavy debt raised worries about wider financial instability.

The rundown

Asian markets took the heaviest hits. Kospi 200 trading was halted at times by circuit breakers, and Japan's Nikkei lost 4.9%. China's CSI 300 slipped by as much as 2.4%, its lowest level since August 2025. TSMC fell 2% despite reporting its sixth straight quarter of profits.

In the US, the Nasdaq Composite fell 1.9% and the S&P 500 fell 1.1%, its worst performance since July. The inflation figure of 3.7% was the fastest rise in prices since the May peak of 4.2%. Deutsche Bank's Jim Reid said the price rises were broad-based across the consumer basket, not only an energy surge.

European markets opened modestly lower: the Stoxx 600 was down 0.4% and the DAX down 0.53%. The IMF said the UK and eurozone could be more insulated than Asia, though investors with US holdings would still be hit.

Sources

  1. JournalismThe Guardian2026-10-15

The debate