HONG KONG, June 10 — Stocks fell today to extend a rollercoaster week for markets, with tech firms once again bearing the brunt of the selling as investors fret over elevated prices and possible US interest rate hikes.

Worries over the Middle East crisis were also weighing on sentiment and pushing oil prices up after US and Iranian forces exchanged fire, just hours after Donald Trump said a peace deal to reopen the Strait of Hormuz was close.

After a blistering AI-centred, tech-led rally since March, traders have been on edge this month as they contemplate a possible US rate increase, with surging inflation caused by the spike in crude costs putting pressure on the Federal Reserve to act.

All eyes will be on the release later in the day of the crucial consumer price index, which is expected to come in at its highest level in more than three years.

That followed forecast-topping US jobs figures Friday that ramped up rate hike talk.

However, the US president—who lambasted Fed chair Kevin Warsh’s predecessor for not cutting enough—said earlier this month that he would “like to see lower interest rates” but that he would “let Kevin make that decision”.

The prospect of higher borrowing costs has hurt the tech industry in particular as they dent consumer spending while firms also rely on debt to power innovation.

Analysts said the tech sell-off was part of a shift by investors into other sectors. Out of 11 sectors in the S&P 500, only tech and energy fell Tuesday, while the other nine advanced.

The Nasdaq and S&P 500 — which have hit multiple record highs this year—both ended down while the broader Dow edged up.

Investors are also battling worries about extended valuations of firms—South Korean chip firm SK hynix has soared 220 percent this year alone—and questions when they will see a return on the vast sums that have been pumped into AI in recent years.

“Exuberance has been building for months, pushing stocks to one record after the next,” said John Cunnison at Baker Boyer Bank.

“So anything perceived to be negative for equities, from higher inflation to even the potential for rate hikes, will knock the market off its footing after a historic run.”

Tech-heavy Asian markets were in the red, with Seoul—the poster child of the region’s surge this year—down more than three percent.

The Kospi swung more than eight percent in either direction on Monday and yesterday following the US jobs figures.

Tokyo and Taipei were also well down, with Hong Kong, Shanghai, Singapore and Wellington also down. Manila and Sydney rose.

Jakarta also gained as the rupiah strengthened following a surprise rate hike by the Indonesian central bank.

Fears over a resurgence of the Middle East crisis added to trader anxieties after US forces struck sites in Iran in response to the downing of a helicopter on Monday, sparking a retaliatory attack on US bases in Bahrain and Jordan.

Trump said the United States would respond “in a strong manner” after “what they did with our helicopter last night”, in a telephone interview with ABC News.

The attacks came after the president had said negotiations to end the war were in their final stages—a claim he has made repeatedly in the past few weeks.

Crude jumped one percent Wednesday amid dimming prospects of a deal to reopen the Strait of Hormuz, through which a fifth of world oil passes. They had fallen as much as five percent at one point Tuesday on optimism a deal would be struck.

 

 

 

 

SEOUL, June 8 — Nvidia on Monday announced a series of deals in South Korea with tech giants including SK Hynix and Naver, as it looks to secure crucial memory chips to power its AI ambitions and entice new customers.

The agreements come during a high-profile trip by Nvidia CEO Jensen Huang to South Korea that began on Friday and has seen him dine on grilled pork belly and local spirit soju with the country’s top corporate bosses, throw a baseball pitch and meet with a well-known gamer.

Nvidia and its partners, which also included SK Telecom and conglomerate Doosan Group, did not disclose the value of the deals.

SK Group, South Korea’s second-largest family-owned conglomerate, said its SK Hynix and SK Telecom arms had agreed deals with Nvidia.

Memory chip maker SK Hynix signed a multi-year technology partnership that will see it commit to developing advanced types of memory for global AI data centres, SK Group said.

SK Hynix and Nvidia said the agreement, which comes as memory chip makers have been straining to keep up with demand, would enable supply to keep pace with Nvidia’s plans, which have expanded to robotics, personal computers and AI supercomputers.

“SK Hynix has been Nvidia’s largest memory partner. SK Hynix will continue to be Nvidia’s largest memory partner,” Huang said after a meeting with SK Group Chairman Chey Tae-won at the headquarters of the chipmaker’s parent.

Huang said the deal with SK Hynix, a rival to Samsung Electronics and US-based Micron Technology, was for more than two years with the option to keep extending.

“We already procure and we buy from SK Hynix already billions and billions of dollars each year, and it’s going to grow substantially,” he said.

Ryu Young-ho, a senior analyst at NH Investment & Securities, said the SK Hynix-Nvidia partnership reinforced the view that memory chips were evolving from a commodity product into a more customer-specific business.

Other deals

SK Telecom said it would build a gigawatt-scale AI cloud in South Korea using Nvidia technology, with the first AI data centre to come online in 2027. Nvidia said internet giant Naver and conglomerate Doosan would also use its technology to help build AI data centres.

Doosan, which is developing robots and makes materials used in Nvidia’s most powerful Blackwell chips, said it expected its energy solution to be used in Nvidia’s data centre platforms and for it to use the US firm’s physical AI technology as well.

Nvidia is also partnering with LG Group on electronics, mechanical systems and AI for humanoid robots, Huang said after a meeting with the tech conglomerate’s Chairman Koo Kwang-mo.

Huang said the pair were also working on the architecture of future data centres including cooling, power delivery and the entire design and building of the data centres.

After a meeting with Hyundai Motor Group’s Executive Chair Euisun Chung in the afternoon, Huang said Nvidia would deepen its partnership with Hyundai across a range of AI initiatives, including autonomous mobility, robotics and AI-powered manufacturing.

He also highlighted opportunities to accelerate the development of industrial robotics, saying Nvidia and Hyundai would work together to bring AI to “all forms of mobility” and deepen collaboration on robotics for practical industrial applications.

Huang referred to Hyundai Motor Group’s planned AI data centre in Saemangeum as an “AI Valley” akin to California’s Silicon Valley and said he was “very happy to build Nvidia in Saemangeum.”

South Korea stock rally falters

South Korea is an Asian manufacturing powerhouse, home to major producers of chips, electronics, cars and ships. SK Hynix and Samsung are the world’s two largest makers of memory chips, which are key components in data centres.

The country’s benchmark Kospi index has doubled in six months as heavyweights SK Hynix and Samsung benefited from the AI wave, but closed 8.3 per cent lower on Monday after robust US jobs data fanned bets on a Federal Reserve rate hike this year and sparked a rout in global tech stocks.

Shares in Samsung and SK Hynix closed down 10.2 per cent and 7.7 per cent respectively.

When asked about the global chip stock rout, Huang waved off concerns. “Everybody should be very excited; they can now buy stock at a cheaper price, and it’s absolutely true that the future of AI is very bright.”

Huang also planned to meet Samsung’s semiconductor business head Jun Young-hyun later on Monday.