{"slug": "asian-markets-retreat-after-rebounding-ai-stocks-send-the-s-p-500-to-brink-of-a", "title": "Asian markets retreat after rebounding AI stocks send the S&P 500 to brink of a new record", "summary": "Asian markets fell sharply on Tuesday, with South Korea's Kospi dropping 7.6%, despite a rebound in AI stocks that lifted the S&P 500 to near a record. Samsung Electronics and SK Hynix slumped 8.7% even after Samsung reported a 19-fold surge in operating income, raising concerns about overvaluation in AI stocks. Oil prices rose and U.S. futures were mixed.", "body_md": "BANGKOK (AP) — Asian shares have retreated, with South Korea's Kospi shedding nearly 8% despite a rebound for [AI stocks](https://apnews.com/article/stock-markets-iran-war-ai-21763c547c9aaaf13483625f90a751cd) that lifted [stocks on Wall Street.](https://apnews.com/article/trump-wall-street-opening-bells-stock-market-e55efa6c06e6eef8feb9049a7800c136)\n\nOil prices rose and U.S. futures were mixed.\n\nIn Seoul, the Kospi lost 7.6% to 7,444.13 as shares in both Samsung Electronics and SK Hynix slumped 8.7%.\n\nThe sharp drops occurred even after Samsung announced its operating income surged 19-fold to 89.4 trillion won ($58.7 billion) in the last quarter while its revenue more than doubled. AI stocks have been gyrating on fears their prices have shot too high, raising questions about whether all the dollars flowing into AI chips and data centers can possibly create enough gains in productivity and profits to make back all the investments.\n\n\"The first proper AI stress test may not have arrived with weak demand, a capex warning, or some sudden crack in the data center story. It may have arrived with Samsung posting an extraordinary quarter and the stock falling anyway,\" Stephen Innes of SPI Asset Management said in a commentary.\n\nSK Hynix will further test investors' appetite for AI this week, aiming to raise $28 billion by selling shares of stock that will trade in the United States on the Nasdaq. That would make it one of the biggest U.S. offerings ever, behind [SpaceX's IPO from last month](https://apnews.com/article/musk-spacex-tesla-ipo-trillionaire-billionaire-worth-rockets-7723f82b6063a9a17c194e25982cd66d), which raised $75 billion.\n\nThe company's stock in Seoul has already more than tripled so far this year because of the AI boom, despite sharp losses in recent weeks.\n\nTokyo's Nikkei 225 declined 1.8% to 68,493.52. Computer chipmaker Tokyo Electron lost 3.4% and chipmaker Kioxia Holdings shed 10.7%.\n\nThe Hang Seng in Hong Kong declined 0.4% to 23,517.70, while the Shanghai Composite index gave up 1% to 3,999.03. Taiwan's Taiex lost 1.8%.\n\nIn Australia, the S&P/ASX 200 declined 0.3% and India's Sensex edged 0.1% higher.\n\nOn Monday, the S&P 500 rose 0.7% to 7,537.54, pulling to within 1% of [its all-time high](https://apnews.com/article/stock-markets-iran-nvidia-energy-oil-ba4257d9938ef6aea558db3010b4a53f), even though the majority of stocks within the index fell.\n\nThe strength for companies in the [artificial-intelligence](https://apnews.com/hub/artificial-intelligence) technology industry sent the Nasdaq composite 1.1% higher, to 26,121.16. The Dow Jones Industrial Average rose 0.3%, to 53,055.91, a record.\n\nBroadcom was one of the strongest forces lifting the S&P 500. It rose 3.7% after announcing long-term agreements to provide silicon products to Apple. It was coming off two straight losses of more than 2% on Wednesday and Thursday at the end of last week, before Friday's [holiday in advance of the Fourth of July](https://apnews.com/article/stocks-markets-rates-ai-oil-trump-de7c9db96ce4d502079892d3ecef88cf).\n\nSpaceX erased an early gain to fall 1% in the last day of trading before it's scheduled to join the Nasdaq 100 index of the largest non-financial stocks on the Nasdaq. That [inclusion will force funds ](https://apnews.com/article/spacex-elon-musk-index-funds-3c26c10b7ca0e838cceb7324f676ef2d)like the QQQ exchange-traded fund, which mimic the index, to buy SpaceX themselves.", "url": "https://wpnews.pro/news/asian-markets-retreat-after-rebounding-ai-stocks-send-the-s-p-500-to-brink-of-a", "canonical_source": "https://ca.finance.yahoo.com/news/asian-markets-retreat-rebounding-ai-050734980.html", "published_at": "2026-07-07 05:07:34+00:00", "updated_at": "2026-07-07 05:30:40.946488+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-chips", "ai-infrastructure", "ai-startups", "ai-products"], "entities": ["Samsung Electronics", "SK Hynix", "Broadcom", "Apple", "SpaceX", "Tokyo Electron", "Kioxia Holdings", "SPI Asset Management"], "alternates": {"html": "https://wpnews.pro/news/asian-markets-retreat-after-rebounding-ai-stocks-send-the-s-p-500-to-brink-of-a", "markdown": "https://wpnews.pro/news/asian-markets-retreat-after-rebounding-ai-stocks-send-the-s-p-500-to-brink-of-a.md", "text": "https://wpnews.pro/news/asian-markets-retreat-after-rebounding-ai-stocks-send-the-s-p-500-to-brink-of-a.txt", "jsonld": "https://wpnews.pro/news/asian-markets-retreat-after-rebounding-ai-stocks-send-the-s-p-500-to-brink-of-a.jsonld"}}