South Korea’s Kospi index tumbled 6% after briefly surpassing the 8,000 mark, as investors rapidly pulled out of AI-driven technology stocks. The sharp reversal exposed growing anxiety around overheated valuations following months of aggressive momentum in the artificial intelligence sector. Many of the market’s biggest winners suddenly turned into sources of pressure, triggering widespread selling across tech-heavy positions. While the index had been fueled by optimism surrounding AI growth, the drop highlights how fragile sentiment can become when expectations run ahead of fundamentals. The correction now leaves markets questioning whether the AI rally is pausing or beginning a deeper reset.

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