US Stocks Drop as Samsung Attacks International Chipmakers – Europe Market Wrap
Stocks declined as volatility returned to semiconductor shares after Samsung’ earnings failed to meet elevated investor expectations despite a 19-fold surge in quarterly profit. S&P 500 futures slipped 0.2%, while Nasdaq 100 futures fell 1% as renewed selling in chipmakers weighed on sentiment.
Samsung dropped 8.8% in Seoul, with US peers Micron and Sandisk falling more than 5% in premarket trading. The renewed weakness reflects growing scrutiny of semiconductor valuations as investors question whether the AI-driven rally has outpaced fundamentals and whether hundreds of billions of dollars in AI infrastructure spending can continue to deliver strong returns. SpaceX is also set to join the Nasdaq 100 on Tuesday.
European equities were mixed, with the Stoxx 600 slipping 0.1% despite 14 of its 20 sectors advancing. Investors continued rotating into other areas of the technology sector, with AI hyperscalers including Amazon and Alphabet gaining in early trading, while Microsoft rose 1.5% alongside broader software stocks.
Brent crude climbed 0.9% to $72.66/bbl following attacks on shipping in and around the Strait of Hormuz, underscoring persistent security risks in the critical energy corridor. Bonds weakened globally as money markets increased bets on tighter monetary policy, pushing the 10Y Treasury yield up 2 bps to 4.49%.
