NEW YORK — Global equities rebounded on Friday after a sharp selloff in technology and semiconductor shares, with investors returning to artificial intelligence-linked stocks as immediate fears over the sustainability of the AI investment boom eased ahead of the U.S. earnings season.
The recovery followed several volatile sessions in which investors questioned whether heavy spending on AI infrastructure would generate sufficient long-term returns, triggering broad profit-taking across chipmakers and other companies viewed as major beneficiaries of the AI trade.
Nasdaq 100 futures rose about 1% during the U.S. Independence Day holiday session, while S&P 500 futures also advanced. In Europe, the Stoxx 600 hovered near record highs, and Asian markets rallied as technology shares recovered from steep losses earlier in the week.
South Korea's benchmark KOSPI index climbed nearly 6%, led by gains of more than 8% in memory-chip makers Samsung Electronics and SK Hynix after both companies suffered sharp declines in previous sessions. The rebound followed a week in which concerns about AI-related valuations prompted one of the largest pullbacks in semiconductor shares this year.
Market participants said the latest gains reflected bargain hunting rather than a decisive shift in sentiment, with investors continuing to evaluate whether rapid growth in AI-related capital expenditure can be sustained. The coming corporate earnings season is widely expected to provide fresh evidence on demand for AI infrastructure and whether spending by major technology companies is translating into revenue and profit growth.
Analysts remained divided on the sector's outlook. Some strategists argued that recent declines primarily reflected stretched valuations after exceptionally strong gains in AI-linked shares during the first half of 2026, while others warned that elevated expectations leave the sector vulnerable to further volatility if corporate results disappoint.
A softer-than-expected U.S. employment report also supported broader market sentiment by reinforcing expectations that the Federal Reserve could still lower interest rates later this year, improving risk appetite across global equity markets. Easing concerns over energy markets following reduced geopolitical tensions added further support to investor confidence.
Despite Friday's rebound, investors continued to monitor the durability of the AI-driven rally after the recent turbulence underscored growing sensitivity to news affecting technology valuations. Attention is now shifting to quarterly earnings reports, which are expected to offer the next significant test of whether continued investment in AI infrastructure can justify the sector's elevated market valuations.
