Deutsche Bank analysts reported that the S&P 500 closed at another record high, buoyed by strong performances in chip stocks and energy companies, despite a generally cautious market breadth [1]. The S&P 500 rose by 0.19% and the NASDAQ by 0.10%, both achieving new record levels. Chip stocks were the standout, with the Philly semiconductor index climbing 2.59% and extending its year-to-date gain to 70% [1]. Energy companies also saw notable gains, while the broader market was more subdued, as most S&P 500 constituents ended lower and the Mag-7 group slipped by 0.26% [1].
European equities showed mixed results, with the Stoxx 600 up 0.11%, FTSE 100 up 0.36%, and Dax up 0.05%. However, France’s CAC 40 underperformed, falling 0.69% due to declines in luxury retail stocks [1].
In Asia, the KOSPI experienced a sharp selloff, dropping as much as 5.1% before trimming losses to 2.90%, following comments from South Korea's presidential policy chief Kim Yong-beom about a "national dividend" to share excess AI industry profits. Kim later clarified that he was referring to using excess tax revenue rather than introducing a new windfall corporate tax [1]. Samsung, a major index component, was down 3.4%. The news also caused NASDAQ futures to lag S&P 500 futures, with NASDAQ futures down 0.34% and S&P 500 futures down 0.14%. STOXX 50 futures in Europe fell 0.61% [1].
Elsewhere in Asia, losses were moderate, with the S&P/ASX 200 down 0.24%, CSI down 0.31%, and Shanghai Composite down 0.40%. In contrast, the Nikkei rose 0.62% and the Hang Seng gained 0.30% [1].
CONCLUSION
The S&P 500 and NASDAQ reached record highs, driven by robust gains in chip stocks and energy companies, while global markets showed mixed performance. Asian markets were particularly volatile following policy comments in South Korea, impacting Samsung and the KOSPI. Overall, chip sector strength continues to be a key driver for US equities, despite cautious sentiment in broader markets.