Finance

Brent crude futures pulled back by nearly 4% to settle below $97 a barrel after crossing the $100 mark earlier in the week. The price decline followed reports that Pakistan, with backing from China, is attempting to broker new peace negotiations between the United States and Iran. The sudden slide in energy costs helped alleviate immediate inflation anxieties and took some pressure off government bond yields.

Chipmakers faced a severe rout as investor anxiety intensified regarding massive artificial intelligence capital expenditures failing to show immediate returns. Intel shares dropped approximately 8% despite surpassing second-quarter financial forecasts, while major memory suppliers like SanDisk and Micron tumbled 11% and 7% respectively. This broad tech weakness heavily weighed down specialized industry funds, including the iShares Semiconductor ETF.

A new set of Section 301 tariffs implemented by the White House went into effect, replacing temporary global trade rules. The updated measures levy duties ranging from 10% to 12.5% on major trading partners, targeting nearly 60 nations including the Eurozone and the United Kingdom. Although energy imports were exempted to shield consumers, analysts warn that these penalties pose a renewed upside risk to domestic inflation.