[Edaily Reporter Kim Kyung-eun] #SamsungElectronics and #SKHynix are plunging even before the market opens, in the wake of last weekend’s Nasdaq crash and the sharp drop in the Philadelphia Semiconductor Index.
As of 8:11 a.m. on the 8th, in pre-market trading, Samsung Electronics is trading at 295,500 won, down 33,500 won (10.18%) from the previous day, while SK Hynix is trading at 1,879,000 won, down 191,000 won (9.23%).
The reasons behind the sharp decline are complex. U.S. nonfarm payrolls rose by 172,000 in May, more than double the market forecast of 80,000, raising the likelihood of an early interest rate hike by the Federal Reserve. With the upcoming Federal Open Market Committee (FOMC) meeting on the 17th and 18th—the first to be chaired by new Fed Chair Kevin Warsh—the likelihood of a hawkish message has increased. Doubts about the pace of AI growth have also surfaced after Broadcom reported better-than-expected earnings but did not raise its outlook for its AI business. Analysts suggest that profit-taking and cash-hoarding moves in semiconductor and AI stocks ahead of next week’s scheduled SpaceX IPO (estimated at $1.77 trillion) also contributed to the sharp decline.
On the 5th (local time), the semiconductor index plummeted on the New York Stock Exchange, with the Nasdaq Composite Index plunging 4.18% to 25,709.43—its sharpest decline since April 2025. The S&P 500 Index fell 2.64%.
Amid rising expectations of U.S. interest rate hikes and skepticism regarding the expansion of AI investments, the Philadelphia Semiconductor Index (SOX) plummeted 10.3%. Major AI semiconductor stocks such as Micron (-13.3%), AMD (-10.9%), and Marvell Technology (-13.3%) fell by more than 10%, while Nvidia also dropped 6.2%.