Quick Read <\/p>\n
South Korea’s KOSPI tripped circuit breakers and shed 15% this week, pulling EWY down 15% and putting QQQ’s pre-market open on watch.<\/p>\n
NVDA and AVGO together hold roughly 15% of QQQ and both depend on Korean memory supply chains now rattled by the KOSPI collapse.<\/p>\n
It sounds nuts, but SoFi is giving\u00a0new active invest users up to $1,000 in stock for a limited time, and all it takes is a $50 deposit to get started. See for yourself<\/a> (Sponsor)<\/p>\n South Korea’s KOSPI tripped circuit breakers in early Monday local trading and is down roughly 7.25% as of 10:45 p.m. ET, an abrupt break in what had been the top-performing major market in the world this year. The question now: does the contagion hit the Nasdaq when New York opens?<\/p>\n What’s Happening in Overnight Trading <\/p>\n The setup is brutal. The KOSPI is still up roughly 75% year-to-date but has shed about 15% since last Tuesday, and the index is dominated by memory-chip giants Samsung and SK Hynix. The iShares MSCI South Korea ETF (NYSEARCA:EWY<\/a>), the cleanest US-listed proxy, already tumbled 7.7% Friday after Broadcom issued a lower-than-expected AI semiconductor revenue forecast, and is down 14.89% over the past week.<\/p>\n US futures are mixed and unsettled. Nasdaq futures sit up about 0.16% as of 9:45 p.m. ET, while S&P 500 and Dow futures are red, with reports that Iran fired missiles at Israel compounding the pressure. In a Financial Times interview Sunday night, President Trump said of Israeli PM Benjamin Netanyahu: “I call the shots. I call the shots. He doesn’t call the shots,” and said Israel would have to accept a ceasefire. Geopolitical uncertainty is compounding the uncertainty that built on Friday after Treasury yields spiked.<\/p>\n Stocks to Watch Tomorrow <\/p>\n The contagion pathway runs straight through the Invesco QQQ Trust (NASDAQ:QQQ<\/a>). Top holdings NVDA (9.74%), MSFT (8.63%), AAPL (7.95%) and AVGO (5.57%) all depend on Korean memory supply.\u00a0NVIDIA\u00a0(Nasdaq: NVDA) CEO Jensen Huang is currently in South Korea and signed a major deal with SK Hynix over the weekend. He hasn’t been outwardly bothered by the sell-off. He said today, “Everybody should be very excited, they can now buy stock at a cheaper price.”<\/p>\n Update 1: Futures at Midnight <\/p>\n U.S. futures are holding in overnight. As of midnight, the Nasdaq is up about .66% while S&P 5000 futures are up .22%. On platforms with 24-hour trading, NVIDIA is up 1.2% overnight while Micron is up 4%. Expect volatility before U.S. markets open tomorrow, but it should be noted the KOSPI continues to rebound. Shares of the Nikkei 225 are down 3.78% headed into the afternoon session.<\/p>\n Update 2: Morning Futures at 8 a.m. <\/p>\n As of 8 a.m. ET, Nasdaq futures are now solidly in the green, up 1.25%. S&P 500 futures are also up .66%. Trump continues to insist negotiations are ongoing with Iran, but continuing reports point to Israel bombing petrochemical facilities inside Iran.<\/p>\n SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $1,000<\/a>\u00a0in complimentary stock for Active Invest accounts. See for yourself by clicking here now. <\/a><\/p>\n Shares of NVIDIA are up 2.25% in premarket trading. Stocks that dropped a substantial amount on Friday are the biggest movers. Marvell Technology shares are up 8.6% after it was announced on Friday the company would be added to the S&P 500. Micron shares are up 6.9% in premarket trading.<\/p>\n Update 3: Nasdaq Gains Holding into Afternoon Trading <\/p>\n As of 12:05 p.m. ET, the Nasdaq is up 1.5% while the S&P 500 is up .71% and the Dow Jones is up .20%.<\/p>\n The Information Technology sector is up 2.46% followed by the Energy sector which is up 1.16%. The worst performing sectors are Communications Services (Down 1.22%) and Utilities (Down 1.15%).\u00a0Marvell\u00a0(Nasdaq: MRVL) has regained a large amount of Friday’s losses. Shares of the stock are up 13.7%. Other winners include Intel (up 12.8%) and Micron (up 10.7%).<\/p>\n Want Up To $1,000? SoFi Is Giving New Active Invest Users Free Stock <\/p>\n Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion\u2014open an account, fund it with $50 or more, and you could receive up to $1,000<\/a>\u00a0in complimentary stock for Active Invest accounts.<\/p>\n