Global stock markets faced significant declines on Tuesday, largely influenced by drops in technology companies. These firms, known for their roles in artificial intelligence and chip production, had previously driven market indices to new heights. However, a recent sell-off beginning in the United States had a global impact, significantly affecting Asian markets.

Major U.S. technology companies, such as Alphabet and Amazon, continued their downward trend in premarket trading on Tuesday following losses from the previous day. SpaceX also saw its value decrease by over 20% across the last three trading sessions, though its price remains above its initial public offering.

In Asia, South Korea experienced the steepest decline. The country had been the strongest stock market globally since 2025 began. The Kospi index, a benchmark for South Korean stocks, dropped 10% at one point. This significant fall triggered a 20-minute suspension in trading by the exchange operator.

South Korea’s stock market surge over the prior year was primarily driven by major players in the memory chip industry, Samsung Electronics and SK Hynix, whose semiconductors are vital for AI systems. As their stock values increased sharply, retail investors flocked to the market, resulting in large fluctuations. On Tuesday, both companies’ shares fell by more than 12%.

Alexander Redman, the chief equity strategist at CLSA brokerage, remarked that such a considerable single-day drop would have caused panic in the past. Now, it seems like a routine part of market dynamics. “It’s unnerving that you’re seeing this kind of volatility,” Mr. Redman commented at an investor conference in Seoul. “It just feels frothy.”