Finance

Chipmaker stocks experienced heavy selling pressure, pulling the broader chip index down by over 4% on Friday. Investors are increasingly reassessing whether massive capital expenditures on artificial intelligence can sustain the premium valuations currently held by sector leaders like Nvidia. This valuation anxiety triggered notable synchronized drops across major Asian and European technology equities.

Shares of Netflix fell significantly, recording drops of up to 11% during late-week trading after management provided third-quarter revenue guidance that missed consensus expectations. Analysts noted that the streaming platform is facing a far more aggressive and competitive entertainment ecosystem, causing investors to trim holdings despite otherwise solid initial indicators for the broader corporate earnings season.

Brent crude oil prices surged over 4% following intense military exchanges and targeted strikes involving the United States and Iran near critical transit points. The conflict has severely disrupted observable commercial traffic through the Strait of Hormuz, stoking energy supply anxieties. Consequently, energy emerged as the sole S&P 500 sector to buck the broader negative market trend and close in positive territory.