(The opinions expressed here are those of the author.)

By Anna Szymanski

July 7 (Reuters) -

What matters in U.S. and global markets today

By Anna Szymanski, Editor-in-Charge, Reuters Open Interest

U.S. chip stocks staged a comeback on Monday, but that momentum

stalled heading into Tuesday as concerns about the durability of

the AI chip frenzy weighed on shares in Asia trading.

Memory chipmaker Samsung Electronics' shares fell nearly 7% on

Tuesday even though it revealed a 19-fold jump in second-quarter

operating profit, while rival SK Hynix also slid, dragging down

South Korea's chip-heavy KOSPI index around 5%.

I'll get into that and more below.

But first, listen to the latest episode of the Morning Bid daily

podcast, where we dig into the market reaction to Samsung's

eye-popping results.

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CHIP DIP

Monday's chip rally stateside appeared to be triggered by news

that Broadcom would extend a deal with Apple to provide the

iPhone maker with custom chips through 2031. The S&P 500 and

Nasdaq closed higher amid the rally.

Nasdaq futures were down more than 1% before the bell on

Tuesday, however, following the ructions in Asia trading.

The pullback in Asian tech stocks on Tuesday could indicate

that much of the upside from soaring chip demand is already

priced in, while jitters about the sustainability of the bonanza

continue to rise. It's worth remembering that Samsung's share

price has already more than doubled year-to-date, while SK

Hynix's has more than tripled.

Elsewhere in tech, Microsoft saw its shares fall nearly 1% on

Monday after it announced that it was cutting around 4,800 jobs

as it seeks to restructure its gaming division. This follows a

roughly 20% drop in the company's share price in the first six

months of 2026.

Over in FX, the yen strengthened slightly on Tuesday but

remained near 40-year lows around 162 per dollar as traders

stayed watchful for potential intervention from Japan's

authorities.

Meanwhile, oil prices climbed following reports that Iran fired

missiles at commercial ships in the Strait of Hormuz yesterday,

with Brent crude trading at nearly $73 per barrel.

Tuesday also sees the start of the NATO summit in Ankara,

Turkey, where European defence spending is likely to be top of

the agenda as leaders seek to demonstrate how they plan to hit

increased NATO spending targets pushed for by President Donald

Trump.

Another point of interest will be President Trump's meeting with

Ukrainian President Volodymyr Zelenskiy on the sidelines of the

summit, slated for Wednesday. Trump on Monday repeated familiar

claims that an end to the Ukraine war could be close.

Chart of the day

NATO leaders began unveiling multi-billion dollar arms deals in

Ankara, Turkey on Tuesday to show they are heeding U.S. calls to

‌spend more to defend Europe.

NATO Secretary General Mark Rutte said on Monday that European

countries had made "staggering" increases in defence spending

due both to fears of Russia, which have spiked since Moscow's

2022 invasion of Ukraine, and President Trump's "forceful"

encouragement of them to do so.

Today's events to watch

* U.S. May trade balance (8:30 a.m. EDT), 3-year note

auction (1 p.m. EDT)

* SpaceX set to join the Nasdaq 100 index

* NATO summit begins in Ankara, Turkey

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