Key Takeaways
- South Korean markets plummeted on Tuesday, with the KOSPI dropping over 8% and the KOSDAQ falling 8.7% to 698.48 points, triggered by a massive global selloff in semiconductor and technology stocks.
- SK Telecom (SKM) shares plunged 16-17%, leading a broader tech retreat alongside memory giants Samsung Electronics (SSNLF) and SK Hynix (HXSCL), which saw double-digit declines.
- Orange (ORAN) raised its full-year 2026 guidance for EBITDAaL to over 4% after a strong Q2 performance, providing a rare bright spot in the global telecommunications sector.
- Geopolitical tensions escalated as Jordan intercepted multiple drones breaching its airspace, while Iran's Foreign Minister held urgent calls with Saudi and Omani counterparts regarding security in the Strait of Hormuz.
- Chinese President Xi Jinping met with Slovakian leadership to push for stronger ties in AI, the digital economy, and clean energy, even as global markets fretted over rising Chinese competition in advanced chipmaking.
Tech and Semiconductor Rout
The global selloff in semiconductor stocks intensified on Tuesday, July 28, 2026, as mounting concerns over the artificial intelligence (AI) spending boom and fresh signs of China’s progress in advanced chipmaking sparked a wave of panic selling. South Korea’s benchmark KOSPI index triggered market-wide circuit breakers after plunging more than 8%, while the tech-heavy KOSDAQ extended sharp losses to close down 8.7% at 698.48 points.
Major industry players were hit hardest; SK Hynix (HXSCL) dived 11.7% and Samsung Electronics (SSNLF) tumbled nearly 10%. Investors are increasingly skeptical of the massive capital expenditures required for AI infrastructure, particularly following reports that Nvidia (NVDA) may provide a $250 billion financial backstop for an OpenAI data center project, raising questions about circular funding risks.
Corporate Earnings and Strategic Moves
In contrast to the broader tech slump, French telecom giant Orange (ORAN) reported robust Q2 2026 earnings, with EBITDAaL reaching €3.53 billion, beating analyst estimates of €3.51 billion. The company subsequently raised its full-year EBITDAaL growth target to above 4% (up from 3%) and increased its organic free cash flow outlook to approximately €4.3 billion.
Meanwhile, SK Telecom (SKM) saw its shares nose-dive by roughly 17% during the Tuesday session. The decline reflects a broader rotation out of South Korean tech and telecom holdings as investors reassess valuations amid intensifying competition from Chinese firms like CXMT, which recently saw an explosive market debut.
Geopolitical Developments
Diplomatic and military tensions remain high across multiple fronts. In the Middle East, the Jordanian Military downed a drone following an airspace breach on Tuesday morning, marking a continuing trend of regional instability. Concurrently, Iran’s Foreign Minister Abbas Araghchi held separate calls with his Omani and Saudi counterparts to discuss the "insecurity in the Strait of Hormuz," emphasizing a need for joint diplomatic efforts to maintain maritime stability.
In Europe, Ukrainian President Volodymyr Zelenskiy is reportedly prioritizing air defense and U.S. strategic cooperation in upcoming meetings with Donald Trump. This comes as President Xi Jinping hosted Slovak President Peter Pellegrini in Beijing, calling for "equal dialogue" and seeking to bridge China-EU disputes through cooperation in emerging technologies like AI and green energy.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.