Finance

The release of Kimi K3, a powerful open-source large language model from Chinese startup Moonshot AI, intensified anxiety among investors regarding domestic tech supremacy. The announcement aggravated doubts over whether the immense capital expenditure of American companies on AI infrastructure can remain justified, pushing leading chip stocks down early before an afternoon attempt to buy the dip.

Streaming giant Netflix saw its shares plummet over 7% after delivering a disappointing revenue outlook for the third quarter, while medical equipment manufacturer Intuitive Surgical plunged roughly 14% on stagnant growth projections. Conversely, positive second-quarter earnings from major insurance players and companies like UnitedHealth Group helped cushion wider losses in non-tech sectors.

The energy complex stood out as the sole gaining sector within the S&P 500 at the end of the week. Oil prices trended upward, with Brent crude rising on escalating Middle Eastern friction and reports of late-session military strikes by the United States against Iranian targets.