Global stock benchmarks posted modest declines as investors reduced exposure to AI and semiconductor firms after recent valuation spikes. The MSCI World Index slipped 0.4 %, led by declines in U.S. and Asian tech giants. European markets closed mixed with banking and energy stocks providing partial support. Traders cited rotation into cyclical and value sectors as bond yields stabilized around 4.4 %. Despite the dip, the AI sector has added over 35 % in 2025 YTD, underscoring continued structural investor interest despite short-term profit taking.