A global selloff in semiconductor stocks deepened on Wednesday as investors retreated from one of the year’s strongest-performing trades amid elevated bond yields, rising oil prices and heightened geopolitical uncertainty.
Shares of Samsung Electronics Co. and SK Hynix Inc. fell more than 7% in Seoul, extending losses after US chipmakers suffered their worst session since late July.
The Philadelphia Semiconductor Index dropped 5% on Tuesday, while an Asian gauge of semiconductor stocks fell 3.5%.
The broader selloff also hit Asian equities, with MSCI Inc.’s Asia-Pacific benchmark declining 2.2%.
South Korea’s Kospi Index led regional losses, plunging about 5.6% as concerns over rising borrowing costs for hyperscalers weighed on investor sentiment.
Equity-index futures pointed to further losses for European and US markets, suggesting that the pressure on technology and semiconductor stocks could spread beyond Asia.
Higher oil prices added to the negative mood. Brent crude traded above $91.60 a barrel, rising for a fourth consecutive session after gaining 4.5% over the previous three trading days.
The continued rise in oil prices reflected persistent uncertainty surrounding the US-Iran conflict and the lack of progress towards resolving the crisis.
Bond markets also remained a major focus for investors.
US Treasuries edged higher after a global bond selloff had pushed the 10-year US Treasury yield close to its highest level since early 2025, while the 30-year yield reached levels last seen in 2007.
The 10-year Treasury yield declined by two basis points to 4.69%, while the US 30-year yield fell one basis point to 5.27%.
The 30-year yield had climbed as high as 5.34% in the previous session.
Japanese 20-year government bond yields also declined as investors moved back into sovereign debt following recent losses.
Technology stocks have come under renewed pressure as elevated bond yields make long-duration growth assets less attractive.
Persistent inflation, heavy government spending and increased government debt issuance have contributed to concerns that borrowing costs could remain high for longer.
The continuing turmoil in the Middle East has added another layer of uncertainty by increasing the risk of energy-driven supply shocks that could keep inflation elevated.
Despite the selloff, investors continue to view artificial intelligence as a significant long-term growth opportunity.
However, the combination of higher interest rates and geopolitical risks is making investors more cautious about paying high valuations for technology companies.
“Higher rates and geopolitical risk are making investors less willing to pay a premium for that growth,” said Jung In Yun, chief executive officer of Fibonacci Asset Management Global.
The market volatility extended beyond technology and bonds.
The Canadian dollar strengthened after the Trump administration agreed to delay 50% tariffs on billions of dollars of Canadian products for three days following high-stakes negotiations in Washington.
Gold remained around $4,335 an ounce after recording its biggest decline in almost a month.
The precious metal has also been affected by the recent bond market selloff and uncertainty surrounding the Strait of Hormuz, which has complicated the outlook for global inflation, interest rates and safe-haven assets.
For equity investors, the combination of elevated borrowing costs, higher energy prices and geopolitical uncertainty is creating a more challenging environment for technology stocks that have driven much of the market’s gains this year.
The immediate outlook for semiconductor shares will depend largely on movements in bond yields, oil prices and expectations for global technology spending, particularly by major cloud and AI infrastructure companies.
