Global Market: AI-driven chip rally stumbles as investors question lofty valuations after sharp selloff

The Philadelphia Semiconductor Index entered bear market territory, falling over 20% from its late-June peak with a 10% weekly decline, as investors booked profits in AI-linked stocks amid concerns over stretched valuations and sustainability of AI capex. Global indices followed suit, with South Korea's KOSPI entering bear market territory and Japan's Nikkei slipping into correction, while momentum stocks and leveraged products saw sharper drawdowns. Upcoming earnings from Alphabet, Tesla, and Intel are expected to provide clarity on AI spending plans and demand outlook.