In South Korea, the stock market collapsed by ten percent

In South Korea, stocks tumbled from record highs as investors sold off chip giants. The Kospi index, which produced a lot during the year, closed on Tuesday with a decrease of about 10 percent.

The fall in the stock market triggered a 20-minute trading break on the South Korean stock exchange before 9 a.m. Finnish time.

The Korean stock market day had started with a slight drop in risk levels, but the index fell sharply towards the end, when a bigger selling wave developed from the situation. On Tuesday, foreign investors sold Kospi shares for almost 5 trillion won, or about 2.85 billion euros. On the other hand, small investors scooped up Kospi shares for more than 8 trillion won, or almost 4.6 billion euros, in the falling market.

Semiconductor manufacturer SK Hynix fell by 12.5 percent and the technology company Samsung 12.3 percent. Among other things, leveraged chip company ETFs have been tied to these companies.

Debt leverage characterizes the South Korean stock market anyway, and Kospi’s volatility has increased recently. Kospi, on the other hand, is one of the most profitable exchanges in the last year.

A portfolio manager who commented to Bloomberg Gary Tanin according to after a long, momentum-driven rise, the Korean market has become increasingly sensitive to changes in retail investor sentiment, especially as attention has shifted to the use of debt leverage by retail investors.

In the United States, stock market futures predict a clear downward trend. Nasdaq 100 futures were down 2.8 percent, S&P 500 futures were down 1.5 percent, and Dow Jones futures were down 0.7 percent.

Yesterday was a down day for Wall Street. A space company SpaceX,’s stock plunged 16.4 percent after it was reported that preparations are underway to launch the first investment-grade bonds to finance artificial intelligence goals.