Korea Pulled the Chip Ripcord

Welcome to LazyListen. This is The Daily Rip for today. I.

trade hit a levered exit, dragging tech down while other sectors quietly held up. The Nasdaq dropped three and a third percent, with tech losing just over four percent. But seven sectors actually rose, and the Dow finished flat.

I. margin call. Consumer staples gained nearly two percent, while chipmakers, optics, cooling, and power names got hit hard.

The catalyst came from South Korea. Their regulator said leveraged single-stock chip ETFs were approved too quickly, sparking a sharp selloff in Samsung and SK Hynix, both down more than twelve percent. S.

memory stocks, dragging Micron lower ahead of its earnings report. So the chip sector’s pain was the headline story, and it spread globally. On Stocktwits, chatter was heavy around Cerebras, Nike, and FedEx, with quantum security name BTQ drawing the loudest company-related buzz.

But none of those moves shook the broader market like the chip selloff. After the bell, Cerebras Systems reported its first quarterly earnings since its May IPO. Revenue nearly doubled year-over-year, hitting just over 190 million dollars, but shares fell nine percent in after-hours trading.

Investors focused on a wider-than-expected loss per share and a full-year gross margin forecast that dropped from the strong first quarter’s pace. The company guided for gross margins between 38 and forty one percent for fiscal 2026, down from forty seven percent in quarter one. , which come with concessions.

Cerebras’s revenue outlook is around 855 to 865 million dollars next year, with heavy customer concentration—eighty six percent of 2025 revenue expected from two UAE entities. This concentration is a key risk investors are watching. Despite the pullback, community sentiment remains about two-thirds bullish, with very high message volume.

FedEx also reported after the close, beating profit estimates but sliding in after-hours trading. Adjusted earnings per share came in at six dollars and thirty-one cents, beating the estimate of just under six dollars, and revenue topped 25 billion dollars. But profit margins disappointed at eight point four percent, below expectations, and the company warned about rising global trade-policy costs.

Shares dropped three and a half percent after hours, extending a similar decline in the regular session. The market seems cautious, even as the package-delivery giant beat on the top and bottom lines. Looking at the broader market movers, the chip rout hit equipment makers hard.

I. infrastructure trade reversed sharply. This shows the ripple effect of the chip selloff beyond just the memory names.

On the upside, some cloud and software names rallied. I. and software growth potential.

Oscar Health popped nearly five percent after management highlighted strong tailwinds and possible guidance upside. Verizon gained three percent as investors rotated into defensive dividend stocks amid the volatility. Precious metals took a hit, with the Silver Trust down five and a half percent on renewed bets for interest rate hikes strengthening the dollar.

-related names. m. Eastern for clues on the housing market.

Earnings reports will also be in focus, with Walgreens Boots Alliance, MoneyHero, Novagold Resources, Paychex, and McCormick & Company releasing results before the open. After the market closes, Micron Technology and Nike will report, both closely watched given the recent chip sector turmoil and Nike’s cautious lead-up. In summary, today’s market action was defined by a sharp unwind in chip stocks sparked by regulatory concerns in South Korea, dragging tech lower while other sectors like consumer staples and defensive names held firm.

Cerebras and FedEx reported mixed earnings after the bell, reflecting the broader theme of growth tempered by margin pressure and macro uncertainty. Watch tomorrow for housing data and key earnings that could set the tone for the rest of the week. Thanks for listening.

Catch you next time on LazyListen.