South Korean Stock Market Falls 8% Amid Chip Stock Decline, Circuit Breaker Triggered

The sharp 8% decline in the South Korean stock market and the triggering of a circuit breaker indicate a deterioration in global risk appetite and could negatively affect GOOGL through technology/chip stocks. GOOGL is already below its 20- and 50-day moving averages, and the MACD is in negative territory, confirming weak short-term momentum. The RSI at 42 is not near oversold territory, meaning there is not yet a strong signal for a rebound buying opportunity. However, since the news is not directly specific to GOOGL, the impact may be limited; there is also a risk of a short-term rebound after the sharp selloff. Therefore, I expect a downward trend but maintain medium confidence.

The KOSPI triggered a circuit breaker after an intraday sharp decline exceeding 13%; selling pressure in chip stocks has hit the index's main drivers. Although the RSI is at 35, it has not yet fully entered oversold territory, while the MACD is clearly below its signal line, confirming negative momentum. The price is trading well below the SMA20 and SMA50, indicating that the short-term trend is downward. Bargain hunting may be seen at openings after the circuit breaker, but a lasting recovery is difficult without clarity in news flow regarding the chip sector. In the 1-3 day outlook, the likelihood of continued downward pressure is higher.

The 8% decline in the South Korean stock market and the triggering of a circuit breaker indicate a deterioration in risk appetite across the global chip sector; NVDA may be negatively affected by this news. However, NVDA has already fallen 12% in 24 hours and its RSI stands at 17.7, placing it in oversold territory, which makes short-term rebound buying possible. MACD is negative and the price is below SMA20/SMA50, leaving the technical picture weak. Although the news flow is negative, I believe the decline may remain limited due to oversold conditions. Nevertheless, downward pressure may persist in the short term.

MU has already fallen 22.7% in 24 hours and is in oversold territory with an RSI of 15.6; MACD is negative and the price is well below SMA20/SMA50. The 8% decline and circuit breaker on the South Korean exchange confirm that global risk appetite for the chip sector has deteriorated and could sustain selling pressure in the short term. However, oversold conditions may set the stage for relief buying; therefore, although the direction is down, I keep confidence moderate. Volatility may remain high over 1-3 days, and short-term bounces may be seen after the sharp decline.