South Korea's KOSPI plunges ~10% on tech rout; SK Hynix, Samsung tumble

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Summary

• South Korea's KOSPI index plunged ~10%, led by SK Hynix and Samsung Electronics, amid renewed AI investment concerns and Chinese competition.
• Ford (F) and GM are competing for a major Pentagon tactical truck contract, with prototypes due for Army testing and first deliveries expected by March 2027.

Download this episode on Apple Podcasts / Spotify or listen below:

• Korea's market meltdown starts with two stocks. (00:14)
• Ford (F) and GM are battling for a Pentagon payday. (01:08)
• Cracker Barrel (CBRL) hits reset—again. (02:00)

This is an abridged transcript.

South Korea's Market Meltdown

South Korea's stock market came under immense pressure on Tuesday, plunging ~10% after a global selloff in tech stocks pushed companies like SK Hynix and Samsung Electronics deep into the red.

The country's KOSPI index fell to its worst session since March.

Deutsche Bank strategist Jim Reid said renewed concerns over AI investment spending and competition from lower-cost Chinese companies were "the dominant driver" of Asian markets, triggering another selloff in global semiconductor stocks.

The selloff was concentrated in South Korea's heavyweight chipmakers:

• SK Hynix (SKHY) tumbled as much as 13%
• Samsung Electronics (SSNLF) fell around 12%

The two companies account for more than half of the KOSPI's weighting.

Reid noted that the weakness also spread to Japan, with the Nikkei falling 4.1%.

Ford and GM Battle for Pentagon Contract

Ford Motor (F) is competing with rivals to secure a contract with the Department of Defense to build a tactical truck for the U.S. Army based on its F-Series Super Duty pickup truck.

According to The Wall Street Journal, Ford (F), General Motors (GM), and BC Customs have been tasked with building a prototype of a truck that can operate as:

• A mobile charging unit
• A troop transport
• A vehicle capable of navigating challenging terrain

The Infantry Squad Vehicle-Heavy (ISV-H) is described as a "hybrid-powered, heavier-duty variant of the standard tactical vehicle."

This would be the largest military contract for Ford (F) since the Cold War.

The DoD expects to buy at least 600 vehicles at a cost of ~$330,000 each.

The prototypes developed by Ford (F), GM (GM), and BC Customs will undergo operational assessments and developmental testing with the Army Test and Evaluation Command, with first deliveries expected by March 30, 2027.

Cracker Barrel Hits Reset—Again

Now an update to a story that has been developing for nearly a year.

The CEO of Cracker Barrel (CBRL) is stepping down. Julie Masino has been on the job less than three years.

Her tenure is marked by an ambitious but ill-fated rebranding effort that was quickly reversed after creating a public relations nightmare.

Masino will be succeeded by former Bloomin' Brands (BLMN) CEO David Deno, effective August 10. She will remain at the company until October 9 in an advisory role.

Cracker Barrel's stock remains 45% below where it traded when she took the helm and has underperformed the S&P 500 by 34 percentage points this year.

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