Global equities are entering a phase of revaluation following a strong rally led by artificial intelligence and semiconductor companies, amid growing concerns about the sustainability of elevated valuations and a resurgence of geopolitical tensions weighing on risk appetite.
Futures for the S&P 500 and Nasdaq rose modestly, supported by a rebound in chip stocks, as investors continued to monitor the fallout from escalating tensions in the Middle East and their potential impact on oil prices and markets.
The semiconductor sector has accounted for a large share of Wall Street's gains this year, but the rally has begun to face pressure as investors move to take profits and reassess whether massive AI spending can deliver future returns.
In Japan, the Nikkei rose 1.38%, supported by semiconductor stocks. Europe's Stoxx 600 index gained 0.4%, driven by the technology sector, which led the advance.