Finance

The chip-making sector faced severe pressure, pushing the PHLX Semiconductor Index into a bear market after weeks of steady dumping. Market participants expressed growing skepticism regarding whether massive capital expenditure on artificial intelligence infrastructure can justify historically high company valuations. Jitters were further amplified by China's Moonshot AI releasing a new high-performance model that directly challenges domestic frontrunners.

Crude oil prices surged toward $82 per barrel following expanded military hostilities and a new round of mutual strikes between the United States and Iran near the Persian Gulf. This spike in energy costs allowed the energy sector to emerge as the sole positive performer among the S&P 500's primary industries. Simultaneously, the supply disruptions revived broader macroeconomic anxieties over persistent inflationary pressures.

Netflix experienced a sharp stock drop of around 7% to 11% after providing a revenue forecast for the third quarter that missed Wall Street projections. Despite sustained double-digit growth and healthy free cash flow, investors reacted negatively to the sequential slowdown in expansion momentum. The streaming giant's decision to scale back the frequency of its customer engagement data reporting added to investor skepticism.