‘Nasty’ chip stock rout plunges Nasdaq into correction territoryThe Nasdaq entered correction territory on TuesdayA global rout in chip stocks plunged the Nasdaq into correction territory on Tuesday just hours after South Korea’s bourse was forced to halt trading, in a sharp change of fortunes for what has been one of the year’s top performing exchanges. The Kospi, which has become a bellwether for investors sentiment towards chip firms, shed more than 10 per cent of its total market capitalisation in a single session. “Chip stocks have once again led declines as the market flexes, some companies like Amazon are upping their own chip capabilities and China’s CXMT stock market debut has cemented fears about a lost market for US companies constrained by trading restrictions.” But they also leave investors vulnerable to outsized losses when sentiment turns, exaggerating the current rout. Beauchamp added that tech juggernaut’s rising borrowing costs suggest “this has the potential to turn into something quite nasty”.