Deutsche Bank analysts report that the S&P 500 closed at another record high, supported by strong gains in chip stocks and energy names, even as broader market breadth remained cautious. They note a sharp selloff in the KOSPI as much as 5% before trimming losses, with Samsung under pressure and NASDAQ futures underperforming S&P 500 futures on the back of weaker tech sentiment.

US equities notch fresh records

"Before that, US equities continued to advance yesterday despite the Iran stalemate, with the S&P 500 (+0.19%) and the NASDAQ (+0.10%) posting new records. Chips stocks again led the way, with the Philly semiconductor index (+2.59%) extending its YTD gain to +70%, while energy companies also surged."

"That said, the broader market mood was a bit more cautious, with most S&P 500 constituents lower on the day and the Mag-7 (-0.26%) slipping. Across the Atlantic, European equities were also more mixed, with the Stoxx 600 (+0.11%), FTSE 100 (+0.36%) and Dax (+0.05%) posting modest gains, while France’s CAC 40 (-0.69%) underperformed amid a fall in luxury retail stocks."

"...the major story out of Asia this morning were comments from South Korea's presidential policy chief Kim Yong-beom proposing a "national dividend" to share in excess AI industry profits. This sent the KOSPI as much as -5.1% lower this morning, though it partially pared back this loss to-2.90% as I type, with Kim clarifying that he was suggesting tapping into “excess tax revenue” rather than introducing a new windfall corporate tax."

"The index heavyweight Samsung is down -3.4%. The news has also led NASDAQ futures (-0.34%) to lag those on the S&P 500 (-0.14%), while STOXX 50 futures (-0.61%) are losing more ground in Europe. But the mood is less negative elsewhere in Asia, with S&P/ASX 200 (-0.24%) as well as the CSI (-0.31%) and Shanghai Composite (-0.40%) seeing moderate losses, while the Nikkei (+0.62%) and the Hang Seng (+0.30%) are advancing."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)