World shares are mixed as AI jitters pull tech shares lower

Key Points:

• Shares declined in Europe and Asia, with AI-related stocks experiencing heavy selling amid concerns that their valuations have become too high. Germany’s DAX fell 0.2%, South Korea’s Kospi dropped 5.8%, and Japan’s Nikkei 225 sank 3.2%.
• South Korean tech giants Samsung Electronics and SK Hynix, benefiting from the AI boom, saw significant losses of 7.8% and 9.8% respectively, reflecting similar declines in U.S. chipmakers like Micron Technology and Nvidia.
• Rising bond yields, driven by high oil prices and inflation fears, added pressure on markets, with the 10-year U.S. Treasury yield remaining elevated at around 4.70%, impacting investor appetite for expensive stocks and borrowing costs.
• Chinese humanoid robot maker Unitree surged nearly 460% in its trading debut on the Shanghai STAR market, while another robot maker, UBTech, saw its shares fall 10.7% in Hong Kong.
• Oil prices increased amid uncertainty over a potential U.S.-Iran deal affecting Persian Gulf oil tanker movements, with Brent crude rising 0.8% to $91.78 per barrel, further clouding market sentiment.