Seagate shares drop 7.1% amid memory sector selloff and Fed rate hike fears

Seagate shares fell 7.1% following reports that SK Hynix may slow expansion of high-bandwidth memory production, sparking a broader selloff in memory stocks. South Korea's KOSPI index dropped 10%, with SK Hynix and Samsung shares losing over 10%. The selloff was also driven by increased market expectations of Federal Reserve rate hikes in 2026, raising concerns about the cost of AI infrastructure investments. Despite the pullback, some analysts see the decline as a buying opportunity given Seagate's strong enterprise fundamentals and recent gains.