Finance

The chipmaking sector suffered another painful session as the PHLX Semiconductor Index plummeted further from its mid-summer peaks. Market participants are increasingly questioning whether immense capital investments in artificial intelligence can justify elevated sector valuations. These concerns were exacerbated by the rollout of a competitive new AI model from China's Moonshot AI, alongside widening global market jitters.

Geopolitical instability in the Middle East sparked a sharp rebound in energy commodities, with Brent crude tracking multi-month highs. Fresh U.S. airstrikes against targets in Iran have heightened fears regarding critical maritime supply corridors, notably around the Strait of Hormuz. Consequently, energy was the lone advancing segment within the S&P 500 as broader market sentiment suffered.

Despite upward pressure from climbing fuel costs, government bond yields eased slightly by the end of the week. The yield on the benchmark 10-year Treasury edge down to roughly 4.52% to 4.55% following positive macroeconomic indicators. Sentiment metrics from the University of Michigan unexpectedly hit a multi-month high, driven by a temporary reprieve in retail gasoline costs and softening long-term inflation expectations.