U.S. stock futures fell in early European trade as AI jitters hit Asian markets. SK Hynix and Samsung Electronics cratered, prompting a brief trading halt on the Korea Exchange, while Nasdaq futures slipped 0.5%. Japanese AI-related shares Advantest, Soft Bank Group, and Tokyo Electron dropped 5–6%, dragging the Nikkei over 2% lower. The Kospi closed 6.4% lower, entering a bear market.

Oil prices steadied after three days of gains, with Brent crude near $85 a barrel, as U.S.-Iran tensions persist. The dollar hovered at a four-week low after U.S. producer prices fell 0.3% in June, reinforcing easing inflation expectations. Fed Chair Kevin Warsh testified that AI investments won't drive persistent inflation.

European indexes edged lower; the Stoxx 600 dipped 0.1%, the FTSE 100 lost 0.5%, and the DAX fell 0.3%. ASML jumped 2.4% after key customer TSMC reported profit growth. Bitcoin dipped 0.4% to $64,667, while gold fell 0.5% to $4,031.60 an ounce despite soft inflation data.