SEOUL, July 30 (Yonhap) -- Seoul shares fell by more than 1 percent Thursday as retail investors heavily sold tech stocks following deep declines over the previous two sessions amid concerns over artificial intelligence (AI) spending and uncertainty about the Federal Reserve's interest rate outlook.

The Korean won strengthened against the U.S. dollar.

After volatile trading, the benchmark Korea Composite Stock Price Index (KOSPI) lost 69.68 points, or 1.23 percent, to close at 5,593.56 after plunging to an intraday low of 5,547.41.

The index also rose as high as 5,976.82 at one point.

After opening 0.33 percent higher, the KOSPI reversed course to end in negative territory.

The broad-based sell-off came amid growing skepticism over whether heavy AI-related investment by major technology companies will generate sufficient returns to justify their elevated valuations.

The Fed on Wednesday (U.S. time) left its benchmark interest rate unchanged at 3.5-3.75 percent, marking its fifth consecutive meeting without a rate change.

The U.S. central bank offered little guidance on the future path of interest rates, leaving investors uncertain about the timing of any policy easing.

kyongae.choi@yna.co.kr

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