Finance

Semiconductor and AI infrastructure stocks faced heavy pressure to close out the week as investors grew cautious about stretched valuations. Applied Materials saw its stock slump more than 5% on Friday after its positive quarterly guidance failed to satisfy lofty market expectations, dragging down other prominent chipmakers like Broadcom and Intel. Analysts noted that even strong earnings beats are increasingly being met with selloffs, indicating a shift toward stricter scrutiny of high-flying technology names.

Energy commodities pushed higher at the end of the week, adding upward pressure to the broader market while boosting sector equities. Oil prices rose by over 1% on Friday following reports that at least one shipping tanker came under attack near the Persian Gulf. The ongoing geopolitical instability surrounding Iran has re-emerged as a catalyst for energy markets, contributing to a tightening trading landscape in commodities.

The amount of leverage used by market participants has climbed to unprecedented levels, with total margin debt tracking above $1.5 trillion. This represents a massive 50% surge compared to the same period last year, indicating an elevated risk tolerance among retail and institutional investors alike. While this leverage has fueled the broader market's climb to all-time highs, economists warn that such substantial debt could compound downside risks if the economic expansion begins to stall.