The AI Chip Sell-Off Looks Scary, But the Real Story May Be Liquidity

On July 7, 2026, the South Korean KOSPI fell ~8%, prompting market-wide trading halts for the second time in a few months. The magnitude of the drawdown signals a severe risk-off shock that is likely to spill across global equity markets.

Analysis

On July 7, 2026, the South Korean KOSPI fell ~8%, prompting market-wide trading halts for the second time in a few months. The magnitude of the drawdown signals a severe risk-off shock that is likely to spill across global equity markets.