Finance

Chip stocks faced significant downward momentum, dragging the broader technology sector lower as investors reevaluated rich artificial intelligence valuations. Jitters were exacerbated after Chinese startup Moonshot AI unveiled a powerful new open-source AI model designed to compete directly with leading U.S. offerings. Despite a temporary intraday bounce in select memory manufacturers, the broader chip sector recorded heavy losses for the week.

Rising military tensions between the United States and Iran over the critical Strait of Hormuz heavily influenced market behavior at the end of the week. While the defense and energy sectors found some support, with Brent crude jumping over 4%, the broader macro environment shifted toward a risk-averse posture. Additional military strikes announced just before the closing bell further weighed on overall investor sentiment.

Digital currencies tracked broader financial markets lower, with Bitcoin retreating to around $63,000 and Ethereum slipping below $1,850. The downturn was fueled by a combination of escalating global conflict, hawkish signs from the Federal Reserve, and a massive expiration of options contracts totaling over $1.4 billion. While spot assets showed relative resilience compared to heavily hit crypto mining equities, the digital asset market remains in a short-term consolidation phase.