Finance

Technology and semiconductor shares rebounded on Friday as fresh details regarding OpenAI's projected enterprise revenue helped soothe immediate fears of an artificial intelligence valuation bubble. The positive forward outlook helped the market stabilize following a sharp sell-off on Thursday, which had been driven by deep concerns over a multibillion-dollar revenue shortfall among chipmakers. Tech sentiment was further supported by expectations that OpenAI could generate upward of $70 billion in annual revenue by the end of the year.

Even with equities bouncing back, macroeconomic headwinds continue to loom large over the market as Brent crude prices hold stubbornly above $100 per barrel amid ongoing maritime conflicts near the Strait of Hormuz. Alongside elevated energy costs, bond yields hovered near multiyear highs, with the benchmark 10-year Treasury yield closing at 5.24%. The upward pressure on rates and energy stems from the grinding conflict involving Iran, which keeps consumer inflation forecasts elevated.

Digital assets traded within a narrow band as the market digested tightening financial conditions and the prospect of further Federal Reserve rate hikes before the end of 2026. Bitcoin recovered from an earlier dip to trade around the $83,000 to $86,000 range, while Ethereum steadied around $2,460. The stability follows a sharp, macro-driven risk reversal earlier in the week that triggered over $600 million in long-side liquidations and pushed institutional ETF flows into the negative.