Finance

The chip-stock selloff intensified as investors increasingly question whether massive artificial intelligence capital expenditures can justify current premium valuations. Adding to market anxieties, a new model release from China's Moonshot AI that claims to outperform certain domestic systems has raised competitive concerns. Industry giants such as Intel, Advanced Micro Devices, and Applied Materials were among the hardest hit during the slide.

Energy markets reacted sharply following an announcement by U.S. Central Command regarding a new round of military airstrikes against Iranian targets. The ongoing conflict has heightened fears of disruptions to critical maritime channels, pushing Brent crude oil prices up by more than 4%. Consequently, energy emerged as the sole gaining sector within the S&P 500 during Friday's volatile session.

Insurance giant Travelers Companies paced gains in both the S&P 500 and the Dow Jones Industrial Average, with its stock soaring 8% on Friday. The company reported adjusted core earnings of $10.04 per share, easily crushing the consensus Wall Street estimate of $5.37. The financial windfall was heavily supported by lower-than-expected catastrophe losses for the second quarter.