European stocks are anticipated to start the day flat or marginally lower amid ongoing concerns about the longevity of the AI-driven rally.

Shares of Samsung Electronics tumbled nearly 10 percent today even though the world's largest memory chipmaker reported a 19-fold surge in second-quarter operating profit from a year earlier, driven by strong demand for memory chips used in AI data centers.

With rising capital expenditures and competition now tied closely to growing semiconductor demand, investors are questioning whether record earnings can be sustained.

Apart from the debate over artificial intelligence, investors are also watching for the U.S. Federal Reserve's meeting minutes and the beginning of the second-quarter U.S. earnings season this week to assess the outlook for consumer demand.

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

Meanwhile, expectations for a dovish Fed stance are increasing after a surprisingly weak June jobs report.

Markets currently price in a 25 percent chance of a 25-basis-point rate hike at the Fed's July 29 meeting, according to CME's FedWatch tool.

The minutes of last month's Fed meeting are due on Wednesday.

Fed Governor Christopher Waller noted in his assessment of inflation targeting that forward guidance can serve as a valuable tool, yet overly rigid commitments may limit the Fed's flexibility to respond to new data.

Microsoft, which is investing heavily in AI, announced it would cut 4,800 jobs, or 2.1 percent of its workforce, right after completing a voluntary retirement program.

Asian markets traded mostly lower, with South Korea and Japan posting the largest regional declines. The dollar came under pressure as markets reduced bets on Federal Reserve rate hikes this month and in September.

Gold slipped toward $4,100 an ounce amid firm U.S. yields and a steady dollar.

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

Saudi Arabia reduced the price of its main crude grade effective August for Asian customers after OPEC+ members approved another modest increase in the collective quota for next month.

U.S. stocks finished higher overnight as investors returned from the Independence Day holiday weekend.

Broadcom and other chip stocks rallied after the company said it would extend its partnership with Apple through 2031 to develop and supply custom chips.

In economic news, data showed U.S. services sector growth slowed in June, though the employment index rebounded after several months of contraction.

While the Dow rose 0.3 percent to reach a new record closing high, the tech-heavy Nasdaq Composite jumped 1.1 percent and the S&P 500 advanced 0.7 percent.

European stocks eased from record levels on Monday as investors digested regional PMI data and select corporate announcements.

The pan-European Stoxx 600 fell 0.4 percent. The German DAX edged up 0.2 percent, while France's CAC 40 and the U.K.'s FTSE 100 each slipped around 0.3 percent.