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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InAmid growing concerns over the sustainability of the tech boom, the semiconductor selloff has evolved from a regional correction into a broader test of confidence in the global AI investment cycle. According to reports, South Korea's KOSPI broke below its 55-day EMA, triggering a spread of selling pressure across Japan and Taiwan, which now threatens to spill over into the tech-heavy NASDAQ index.
This downturn comes as major chipmakers face mounting pressure; market data indicates that the rout is affecting key suppliers to Nvidia, fueled by fears that valuations have reached overextended levels. Compared to previous quarterly earnings, analysts are closely monitoring profit margins at firms like TSMC and Samsung to gauge if growth can be sustained, especially as expectations rise that any slowdown in cloud capital expenditure could deepen sector losses.
With current price data unavailable for this session, global markets are watching whether technical support levels can hold to prevent further contagion. Looking ahead to the economic calendar, traders are focused on Fed Bowman's speech on July 13, 2026, and the US CPI report on July 14, 2026, as these catalysts will be pivotal in shaping monetary policy expectations and their impact on tech sector financing costs.