AI-supercharged stock market is world’s worst in third quarter

The South Korean stock market, bolstered by AI-driven trading, saw a significant decline in the third quarter, dropping almost 20% by September following a July sell-off. Despite this downturn, the Kospi index remains up 60% for the year, highlighting the mixed impact of AI on market performance. This volatility underscores the challenges of relying heavily on algorithmic trading, raising questions about long-term stability and investor confidence in tech-driven markets. For investors, it's a reminder to consider the broader economic context and the potential risks of over-reliance on AI in financial markets.