Where does Europe fit in the so-called China-US AI race?

• Wall Street stocks are recovering on Monday, with shares tied to the artificial intelligence boom bouncing back after steep losses on Friday. • Oil prices have retreated from overnight highs following a surge triggered by direct military strikes between Israel and Iran.

• Twenty-six cybersecurity merger and acquisition (M&A) deals were announced during May 2026. • Major industry players involved in these transactions include Cisco, Zscaler, Akamai, Check Point, Cyera, Dragos, and WatchGuard.

• A PwC 2026 AI Performance Study of 1,217 large enterprises reveals that the top 20% of companies are capturing 74% of AI's total economic value. • The study identifies that these leaders prioritize growth and the redesign of business foundations over simple efficiency gains or the adoption of individual tools.

• The AI-driven stock market rally is facing potential headwinds as indicators suggest the current investment mania may be becoming unsustainable. • A comprehensive checklist of 18 "red flags"—including valuations, capex, and investor sentiment—shows that 10 global indicators and 11.5 U.S. indicators are currently flashing.

• Global tech stocks have experienced a significant plunge as the previous AI-driven rally undergoes a market correction. • The selloff is being driven by increasing investor bets on Federal Reserve rate hikes and a strengthening U.S. dollar.

• Infosecurity Europe 2026 highlighted how AI is "turbo-charging" cybercrime, enabling criminals and hostile states to launch faster and more collaborative attacks. • Experts noted a shift in attacker behavior throughout 2025, moving from simple chatbot usage to integrating Large Language Models (LLMs) directly into attack chains to manage dynamic tasks.

• S&P 500 and Nasdaq futures are climbing as chip stocks stabilize following a period of volatility that slowed the recent AI-driven rally. • The market shift comes as investors weigh whether high expectations for artificial intelligence can be met, despite strong business fundamentals.

• AI chip giants TSMC, Samsung, and SK Hynix are dominating Asia's investment landscape, driving significant stock rallies in Taiwan and South Korea. • The extreme concentration of these winners has created systemic risks, forcing fund managers like Sam Konrad to sell off their best-performing assets to maintain portfolio balance.

• Investor Manishi Raychaudhuri views the recent sharp sell-off in Asian tech stocks, particularly in Korean and Taiwanese markets, as a strategic buying opportunity. • He argues that the downturn is driven by temporary sentiment rather than fundamentals, as AI capital expenditure demand and semiconductor prices remain strong.

• Asian stock markets experienced a sharp sell-off on [Current Date] following a stall in the recent US technology rally. • South Korea's KOSPI index triggered a rare circuit breaker to halt automatic trading and curb panic selling.

• South Korea's KOSPI index plunged 8% on Monday, triggering a 20-minute circuit breaker halt to stabilize the market. • The crash was driven by a broader US semiconductor selloff, causing major tech giants Samsung and SK Hynix to drop 10%.