Funding Stress Tests AI Stocks; Crypto Spillover Remains Conditional

South Korea’s KOSPI fell more than 6% on Tuesday, its fifth straight decline, while the Philadelphia Semiconductor Index headed for a sixth consecutive loss after gaining 68% in 2026. The retreat in AI stocks is testing whether higher, more volatile capital costs can carry stress from crowded positions into other risk assets, including Bitcoin and Ethereum. Reuters identified elevated bond yields, concentrated positioning, tighter financing and overlapping portfolios as possible channels for broader de-risking.