The recent sell-off in technology stocks has intensified, with the Nasdaq Composite falling 4.18% to 25,709.43, marking its largest drop since April 2025. This negative sentiment has spread globally, impacting major Asian markets, including South Korea's Kospi, which saw a temporary trading halt after plummeting over 8%.
Key players in the memory chip market, Samsung Electronics and SK Hynix, experienced declines of 5% and 2%, respectively, contributing to the overall downturn. Finance professor Jeremy Siegel noted that such pullbacks are common after rapid price increases and may not indicate a prolonged correction.
Additionally, geopolitical tensions, particularly between Israel and Iran, have further influenced market dynamics, with oil prices rising sharply following missile exchanges between the two nations.
In corporate developments, Intesa Sanpaolo has initiated an all-share takeover bid for Banca Monte Dei Paschi di Siena, offering a 12.5% premium, amidst a competitive landscape that includes Banco BPM's recent $58 billion merger proposal.
Lastly, NYU finance professor Aswath Damodaran expressed skepticism about SpaceX's valuation ahead of its public market debut, deeming it 'too richly priced' compared to his own valuation estimates