.jpg?20260708')
GLOBAL stocks fell yesterday as technology shares slid despite blockbuster results from Samsung Electronics, with investors remaining concerned about the sustainability of the AI-driven rally, while oil prices rose on renewed Middle East tensions.
The tech-heavy Nasdaq Composite was down 0.97 per cent in early trading yesterday, while the S&P 500 slipped 0.32pc. The Dow Jones Industrial Average was flat.
Stocks took a step backwards despite Samsung Electronics forecasting a 19-fold jump in April-June operating profit to 89.4 trillion won ($58.4 billion), a third straight quarter of record operating profit for the world’s largest memory-chipmaker.
Rather than reassuring investors, the results triggered heavy selling in Samsung and rival SK Hynix shares, weighing on South Korea’s Kospi and other technology-heavy Asian markets. Investors have increasingly questioned whether profit growth linked to artificial intelligence can be sustained if supply bottlenecks in key components such as memory chips ease.
“This is a record for Samsung, but rather than placate the markets, these strong results have led to fears that the AI chip sales boom cannot be sustained,” Kathleen Brooks, research director at XTB, said.
Further weighing on markets was a Reuters report that Chinese startup DeepSeek was developing its own AI chip, which could reduce its reliance on other major chipmakers to train and run its AI models.
SK Hynix is due to join the Nasdaq this week in a $28bn listing, one of the world’s largest new share sales, as the chipmaker seeks to capitalise on the AI boom.
In Europe, where exposure to volatile AI-linked stocks is more limited, the STOXX 600 slipped 0.16pc, as losses in semiconductor and tech stocks offset gains in oil and gas shares. Energy stocks got a lift from crude prices gaining on the back of signs that U.S.-Iran peace talks were losing momentum.
MSCI’s gauge of stocks across the globe was down 0.36pc.
Adding to market concerns, Iran’s Revolutionary Guards fired at least two missiles at commercial ships transiting the Strait of Hormuz on Monday, Axios reported, citing two US officials. The ships suffered significant damage, but there were no casualties, the report said.
Brent crude futures rose about 1.9pc to $73.37 a barrel.
US President Donald Trump, who has pressed Europe to boost defence spending and clashed with European leaders over the Iran war and Greenland, was due to attend a Nato meeting in Turkiye beginning yesterday.
Trump said on Monday the US would either reach a deal with Iran or “finish the job,” renewing his threat of military action as Tehran projects defiance following the funeral of Supreme Leader Ayatollah Ali Khamenei.
&uuid=(email))