Finance

The technology-heavy Philadelphia Semiconductor Index plummeted over 10% on Friday as investor enthusiasm for the artificial intelligence trade appeared to reach a saturation point. High-profile chipmakers including Nvidia, Broadcom, and Intel were among the heaviest weights on the market, contributing to a broader rotation out of high-growth tech stocks into defensive and value-oriented sectors.

Safe-haven assets and cryptocurrencies were not immune to the market volatility, as Bitcoin fell below the $60,000 threshold, marking its lowest level since late 2024. Simultaneously, spot gold prices dropped more than 3.5%, erasing earlier gains for the year as rising Treasury yields and a stronger dollar diminished the appeal of non-yielding assets.

Energy infrastructure and oil prices remain a focal point for investors as conflicts in the Middle East continue to disrupt shipping through the Strait of Hormuz. While some indexes showed resilience earlier in the week due to hopes for diplomatic resolutions, recent spikes in gasoline prices and heightened inflation expectations have contributed to a more cautious market outlook heading into mid-June.