As the South Korean KOSPI index has dropped roughly 28% over the past month, Jim Cramer is pointing to the intertwined relationship between U.S. and Korean tech stocks as a hidden driver of Wall Street's recent struggles, labeling the link an "under-rated reason" for the slump.
The 'Nightmare' Correlation Reacting to reports of tightening correlations between the two markets, Cramer took to X to voice his concerns regarding the broader tech sector's recent underperformance.
He described the growing global linkage as an "under-rated reason for tech under-performance" and a "nightmare addition to our markets." This warning comes as the KOSPI Composite Index has plummeted 28.39% in just one month, falling over 35% from its 52-week high of 9,385.59.
Meanwhile, data from Rayliant Global Advisors reveals that the 60-day correlation between the tech-heavy Nasdaq 100 and the KOSPI recently hit roughly 0.50, marking its highest level since 2021.
Under-rated reason for tech under-performance.
