Global Markets Mixed as AI Valuation Concerns Offset Wall Street Optimism

Global stock markets traded mixed on Tuesday as investors weighed renewed optimism over artificial intelligence (AI) against concerns that soaring valuations may have outpaced fundamentals, while geopolitical tensions in the Middle East kept oil prices elevated.

European markets opened on a mixed note, with Britain's FTSE 100 advancing, France's CAC 40 edging higher, and Germany's DAX slipping. US futures were little changed after Wall Street's AI-driven rally pushed the S&P 500 closer to a record high and lifted the Nasdaq in the previous session.

Asian markets, however, came under pressure. South Korea's Kospi led regional losses as Samsung Electronics tumbled 7.7% despite reporting a 19-fold surge in quarterly operating profit and more than doubling revenue. Analysts attributed the decline to investors booking profits after a strong rally. SK Hynix also fell ahead of its planned $28 billion Nasdaq share sale , one of the largest US equity offerings on record.

The pullback underscored growing investor caution over AI stocks, with market participants questioning whether massive investments in chips and data centres will ultimately generate sufficient returns.

On Wall Street, Broadcom gained after announcing long-term silicon supply agreements with Apple , helping offset broader market weakness. SpaceX slipped ahead of its scheduled inclusion in the Nasdaq-100 index.

Meanwhile, Brent crude climbed toward $73 a barrel after a tanker was reportedly struck near the Strait of Hormuz , renewing concerns over energy supply disruptions in one of the world's most strategically important shipping lanes.

In currency markets, the US dollar weakened slightly against the Japanese yen, while the euro edged lower against the greenback.