Global Stocks Rally as Chip Surge Lifts Markets, South Korea’s Kospi Jumps Over 8%

Global stock markets extended their gains on Tuesday as a strong rebound in semiconductor stocks boosted investor confidence, helping Wall Street futures move higher and sparking a broad rally across major Asian exchanges. Futures tied to the S&P 500 climbed 0.26%, while Nasdaq 100 futures gained 0.55%, signaling continued optimism following a technology-led recovery in U.S. markets.

The rally was particularly pronounced in Asia, where South Korea’s Kospi index surged an impressive 8.18% after suffering losses in the previous session. Japan’s Nikkei 225 also posted strong gains of more than 2%, closing above 65,400 points. Meanwhile, China’s CSI 300 advanced 1.87%, Hong Kong’s Hang Seng Index edged higher, and Australia’s benchmark S&P/ASX 200 slipped slightly, reflecting mixed regional sentiment.

On Wall Street, chipmakers and artificial intelligence-related stocks were the primary drivers of Monday’s market recovery. The S&P 500 rose 0.3%, while the tech-heavy Nasdaq Composite gained 0.86%, recovering part of last week’s losses. However, the Dow Jones Industrial Average moved in the opposite direction, falling 0.16% as investors remained selective amid ongoing economic and geopolitical uncertainties.

Despite the renewed enthusiasm surrounding AI and semiconductor companies, some market analysts warned that the rally may face challenges over the long term. Brian Kersmanc, portfolio manager at GQG Partners, questioned whether current valuations can be sustained, noting that rapid price increases in certain segments of the chip industry resemble commodity market booms that may eventually cool as supply catches up with demand.

Investors are also keeping a close eye on geopolitical developments in the Middle East. While Iran announced a halt to military strikes against Israel, tensions remain elevated after both sides exchanged warnings over potential future actions. Alongside these concerns, markets are awaiting key U.S. economic data and corporate earnings reports from major companies, which could provide fresh direction for global equities in the days ahead.

source: cnbc