MU, SNDK Dip Overnight: KOSPI Hits Halt Amid Asian Tech Chip Rout, SoftBank, Samsung, SK Hynix Retreat

• Micron shares dipped 1.3%, while SanDisk and Seagate stocks dipped 2.2% each and Western Digital fell 1.7%.
• South Korea’s benchmark KOSPI was last down 5.3% at 6,558.41, after earlier falling as much as 6.4% and a brief halt in trading.
• The retail sentiment was ‘bearish’ for MU, STX, SKHY and WDC, and ‘bullish’ for SNDK.

U.S. memory chip stocks dipped in overnight trading heading into Wednesday, tracking a sharp selloff in Asian tech stocks and South Korea’s benchmark index, where trading was briefly halted after a steep plunge.

Micron shares dipped 1.3%, while SanDisk and Seagate stocks dipped 2.2% each and Western Digital fell 1.7%. The Roundhill Memory ETF (DRAM) dipped 1.7%. U.S. shares of SK Hynix dipped 2%, while its Seoul shares were down 5.6%. 

Micron fell below the $1,000 mark, a level it had reclaimed on Monday after trading below it for months.

The moves are the latest example of how increasingly intertwined global markets have become. U.S. markets fell sharply on Tuesday, led by tech stocks, as Middle East uncertainty pushed bond yields to multiyear highs and raised concerns about borrowing costs and inflation. 

KOSPI Plunges As Korean Chips Lead Selloff

The selloff spilled into Asian markets and tech stocks on Wednesday, putting further pressure on U.S. stocks.

In Asia, SoftBank shares in Tokyo declined nearly 10%, while Samsung shares in Seoul were down 7.4%. South Korea’s benchmark KOSPI was last down 5.3% at 6,558.41, after earlier falling as much as 6.4% and a brief halt in trading.

The latest decline also signals profit-taking. The index had risen more than 2% on Tuesday, extending its winning streak to six sessions.

Oil Adds To Macro Pressure

Oil prices rose for a fourth straight session on Wednesday as the US-Iran conflict showed little sign of easing, keeping uncertainty around the Strait of Hormuz at the center of the energy market. 

Brent crude traded above $91 a barrel after gaining 4.5% over the previous three sessions, while West Texas Intermediate was near $85.

Retail Traders Turn Bearish On Memory Stocks

On Stocktwits, the retail sentiment was ‘bearish’ for MU, STX, SKHY and WDC, and ‘bullish’ for SNDK. 

“$MU just checked this very minute. You should thank the Korean gov restricting margins or this would’ve been down 10% by now. But it’s gonna go down more,” said a trader. 

“$MU Surely the current pullback doesn’t necessarily cancel the long term thesis,” another trader wrote. “It appears today’s decline appears tied more to broad semiconductor/AI-stock profit-taking, than to a deterioration in Micron’s reported fundamentals. From past drill, $1K will be back on the table.”

Year to date, MU is up 230% and SNDK has gained 585%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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