(RTTNews) - European equities are anticipated to begin the session little changed or slightly softer on Tuesday amid persistent questions surrounding the durability of the artificial intelligence rally.

Shares in Samsung Electronics tumbled close to 10 percent after the leading memory chip producer reported a sharp 19-fold increase in second-quarter operating profit compared with the prior year, driven by strong demand for components used in AI data centers.

With higher capital spending and intensifying competition now tied to semiconductor growth, market participants are probing whether current earnings levels can be sustained.

Apart from the artificial intelligence discussion, investors are also watching for the U.S. Federal Reserve meeting minutes and the launch of second-quarter U.S. earnings reports this week to assess prospects for consumer spending.

Delta Air Lines and PepsiCo are scheduled to release results later in the week ahead of a busier reporting period.

Meanwhile, expectations for a more accommodative Fed have increased following a weaker-than-expected June employment report.

Markets currently assign a 25 percent probability to a 25-basis-point rate increase at the Fed meeting on July 29, based on CME FedWatch data.

Minutes from last month's policy gathering under new Chair Kevin Warsh will be released on Wednesday.

Fed Governor Christopher Waller noted that forward guidance remains a useful instrument, yet inflexible pledges may limit the central bank's flexibility when responding to evolving economic indicators.

Microsoft, which continues heavy investment in AI, announced plans to cut 4,800 positions representing 2.1 percent of its workforce right after completing a voluntary retirement initiative.

Asian markets traded mostly lower, led by declines in South Korea and Japan. The dollar came under pressure as traders reduced bets on near-term Federal Reserve rate increases.

Gold prices eased toward $4,100 per ounce amid steady U.S. yields and a firm dollar.

Brent crude futures held above $72 a barrel, remaining near a more than four-month low on indications of increased supply flows through the Strait of Hormuz.

Saudi Arabia reduced the price of its flagship crude grade for August deliveries to Asian buyers after OPEC+ approved another modest increase in the group production quota for next month.

U.S. stocks finished higher in the previous session as traders returned following the Independence Day break.

Broadcom and other semiconductor names advanced after the firm announced an extended collaboration with Apple through 2031 to design and provide custom chips.

On the economic front, data indicated that U.S. services sector expansion moderated in June even as the employment component recovered from prior contraction.

The Dow gained 0.3 percent to set a fresh record close, while the Nasdaq Composite climbed 1.1 percent and the S&P 500 rose 0.7 percent.

European benchmarks retreated from record territory on Monday after investors digested regional PMI figures and company-specific developments.

The Stoxx 600 index fell 0.4 percent. The German DAX edged 0.2 percent higher, whereas France's CAC 40 and the U.K.'s FTSE 100 each declined around 0.3 percent.

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