Finance

Chipmaker stocks experienced an intense sell-off as the PHLX Semiconductor Index officially plunged into a bear market, down roughly 20% from its recent highs. Investor enthusiasm was heavily dented by growing skepticism over high artificial intelligence infrastructure spending. Sentiment was further pressured after the Chinese AI startup Moonshot launched its open-source Kimi K3 model, which reportedly rivals top-tier American systems.

Energy prices spiked significantly as geopolitical conflicts intensified following fresh United States military airstrikes in Iran. WTI and Brent crude oil prices climbed amid escalating fears of supply chokepoints along the critical Strait of Hormuz. This commodity rally caused energy to emerge as the standout gaining sector within the equity markets, though it concurrently renewed fears of long-term inflationary pressures.

The broader cryptocurrency market cap declined near $2.2 trillion as primary digital tokens like Bitcoin and Ethereum tracked the losses of traditional risk assets. Bitcoin fell to the $63,000 range and Ethereum slid below $1,850 following the flare-up of tensions in the Middle East. Analysts noted that macro economic anxiety and hawkish Federal Reserve signals have kept digital currencies on the defensive despite long-term bullish forecasts.