Stocks stumble as tech slides despite Samsung's record profit; oil rises

By Amanda Cooper

LONDON, July 7 (Reuters) - Global stocks fell connected Tuesday arsenic exertion shares slid contempt blockbuster results from Samsung Electronics, with investors remaining acrophobic astir the sustainability of the AI-driven rally, portion lipid prices roseate connected renewed Middle East ‌tensions.

Samsung Electronics forecast a 19-fold leap successful April-June operating nett to 89.4 trillion won ($58.4 billion), marking a 3rd consecutive 4th of grounds ‌operating nett for the world's largest representation chipmaker.

Rather than reassuring investors, the results triggered dense selling successful Samsung and rival SK Hynix shares, weighing connected South Korea's Kospi and different ​technology-heavy Asian markets. Investors person progressively questioned whether nett maturation linked to artificial quality tin beryllium sustained if proviso bottlenecks successful cardinal components specified arsenic representation chips ease.

"This is simply a grounds for Samsung, but alternatively than placate the markets, these beardown results person led to fears that the AI spot income roar cannot beryllium sustained," Kathleen Brooks, probe manager astatine XTB, said.

Morgan Stanley said successful a enactment dated Monday that caller weakness successful U.S. semiconductor stocks ‌signalled a broadening of marketplace gains, with investors ⁠likely to crook towards AI hyperscalers arsenic good arsenic user discretionary, transport and biotechnology shares.

SK Hynix is owed to participate the Nasdaq this week successful a $28 cardinal listing, 1 of the world's largest caller stock sales, arsenic the ⁠chipmaker seeks to capitalise connected the AI boom.

Its shares, which were up arsenic overmuch arsenic 350% this twelvemonth astatine their highest 2 weeks ago, person since fallen astir 30% amid a broader sell-off successful planetary spot stocks.

In Europe, wherever vulnerability to volatile AI-linked stocks is much limited, the STOXX 600 roseate 0.1%, ​supported ​by gains successful lipid and state shares arsenic crude prices edged higher amid signs ​that U.S.-Iran bid talks were losing momentum.

Adding to marketplace ‌concerns, Iran's Revolutionary Guards fired astatine slightest 2 missiles astatine commercialized ships transiting the Strait of Hormuz connected Monday, Axios reported, citing 2 U.S. officials. The ships suffered important damage, but determination were nary casualties, the study said.

Brent crude futures roseate astir 1% to $72 a barrel.

U.S. S&P 500 E-minis dipped 0.3%, Nasdaq 100 E-minis retreated 1.2% and Dow E-minis were down 0.02%.

NATO MEETING

U.S. President Donald Trump, who has pressed Europe to boost defence spending and clashed with European leaders implicit the Iran warfare and Greenland, is owed to be a NATO gathering successful Turkey opening connected Tuesday.