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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
This market reaction comes as the technology sector faces mounting pressure to justify massive investments in artificial intelligence. Asian markets started the week sharply lower, following a significant drop in the Nasdaq index last Friday. The South Korean index plunged as the sell-off in the technology sector widened, reflecting growing investor anxiety regarding overextended valuations in the sector.
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Sign InThe decline coincides with selling pressure on semiconductor giants, with Nvidia shares falling approximately 10% over the past week per market data, impacting Asian suppliers like SK Hynix and Samsung. According to Bloomberg reports, investors are re-evaluating their positions in Big Tech after record gains, amid concerns that capital expenditure on AI infrastructure may begin to decelerate.
Regarding economic data, South Korea's inflation rate released on June 1, 2026, rose to 3.1% YoY, exceeding the 3% forecast. Traders are closely monitoring support levels for regional indices, with attention turning to the Fed's Kashkari speech scheduled for June 2, 2026, for clues on monetary policy and its subsequent impact on growth stocks.