The AI Stress Test
How a Korean tax proposal on unrealized gains triggered a global semiconductor selloff and Nasdaq plunge.
Today’s U.S. stock performance was jaw-dropping! On Tuesday (June 23), U.S. Eastern Time, the three major U.S. indices all opened lower. The Nasdaq once fell more than 2.2%, and the Philadelphia Semiconductor Index plunged over 7% at one point. The Dow Jones showed relatively stronger resistance and briefly turned green during the session.
At the individual stock level, Micron Technology plunged more than 13%, SanDisk dropped over 12%, Qualcomm fell more than 6%, and AMD declined over 5%. Storage and optical communication concept stocks suffered a comprehensive rout.
On the same day, European markets followed suit, with the Stoxx 600 Technology Index falling more than 3.3%. Japan’s Nikkei 225 closed down 3.55%. The global tech sector experienced a synchronized decline.
The direct trigger for all of this was a Korean “tax essay” that circulated during Asian trading hours — a policy discussion document about including unrealized gains from stocks and real estate in the taxation system.
