The KOSPI, Korea's benchmark stock index, experienced a significant decline of over 8% as the recent AI rally lost momentum. Major contributors to this downturn included heavyweights like Samsung Electronics and SK Hynix, which plummeted by 10.2% and 7.7%, respectively. The selloff was exacerbated by disappointing guidance from Broadcom, which had previously fueled optimism in AI chip stocks. Investors are now adopting a cautious stance, especially as geopolitical tensions in West Asia rise, potentially impacting energy prices and inflation. The strong US jobs report has also heightened concerns that the Federal Reserve may not lower interest rates, further influencing market sentiment. The broader Asian market reflected this trend, with significant drops in other tech stocks such as Taiwan Semiconductor Manufacturing Co and Japan's Softbank. The situation underscores the fragility of the current market as investors navigate both economic and geopolitical uncertainties.