A devastating sell-off swept across global financial markets on Tuesday, June 23, 2026, as technology stocks led a crash that wiped out more than $1 trillion in market value. South Korea's KOSPI index bore the brunt, plunging approximately 10% and triggering a trading halt — the fourth such circuit breaker this year.

Why the market crashed today

The sell-off was triggered by mounting doubts over whether hyperscale technology companies can justify their massive artificial intelligence infrastructure spending. Investors grew spooked after Alphabet Inc. shares tumbled 5% in after-hours trading, signaling that the AI investment boom may be outpacing actual returns. The concern spread rapidly across Asian markets during Tuesday's trading session.

South Korea bears the worst damage

South Korea's benchmark KOSPI index crashed 10%, its worst single-day decline in years. The losses were concentrated in the country's two semiconductor giants — Samsung Electronics plunged 12.3% and SK Hynix fell 12.5%. Both companies had only recently joined the exclusive $1 trillion club last month. Their combined weight in the KOSPI index, accounting for roughly half its market capitalization, dragged the entire market down. The Korea Exchange triggered a 20-minute trading suspension as circuit breakers kicked in.

Contagion across Asian markets

The panic was not confined to South Korea. Japan's Nikkei 225 index closed 3.55% lower, led by losses in tech conglomerate SoftBank Group, which slumped over 15%, and chip maker Kioxia, which fell more than 10%. China's Shanghai Composite Index declined 1.4%, while Hong Kong's Hang Seng index fell 1.7%. European markets also opened sharply lower, with the Stoxx 600 falling 1% as mining and technology stocks bore the brunt.

India markets under pressure

Indian markets were not immune to the global turmoil. The Sensex and Nifty both opened gap-down, pressured by sustained foreign institutional investor selling, a weakening rupee, and rising crude oil prices. The India VIX volatility index spiked, signaling heightened investor anxiety. Technology stocks led the decline on Dalal Street, with shares of Infosys, TCS, and HCL Tech all falling sharply. The sell-off comes at a time when Indian IT companies are already navigating a challenging demand environment.

US futures signal more pain ahead

US stock futures pointed to further declines when Wall Street opens. Nasdaq 100 futures tumbled 2.4%, while S&P 500 futures slid 1.4%. The sell-off follows Monday's weakness where the tech-heavy Nasdaq Composite fell 1.3%, dragged down by Alphabet, Amazon, Microsoft, and Meta Platforms. Analysts warn that the AI-driven rally that powered markets through 2025 may be losing steam as investors demand clearer proof of returns on the hundreds of billions being poured into data centers and AI infrastructure.

What this means for Indian investors

For Indian retail and institutional investors, the global tech rout presents both risks and opportunities. The sharp correction in global tech stocks may lead to further FII outflows from Indian markets in the short term, putting additional pressure on the rupee. However, lower valuations in Indian IT stocks could attract long-term value investors. Market experts advise avoiding panic selling and focusing on fundamentally strong companies with solid earnings visibility. The sell-off also underscores the importance of diversification beyond tech-heavy portfolios.

Sources: Bloomberg, Reuters, CNBC, NYT, Business Insider, Economic Times