AI Selloff Deepens on OpenAI Delay, Chip Rout; Dow Holds as Oil Slides, Healthcare Rotates In

US stocks ended mixed on Friday with the S&P 500 slipping 0.05% and the Nasdaq falling 0.24%, but the divergence was stark: the PHLX semiconductor index plunged 5.3% for the day and 7.9% for the week, driven by profit-taking in Micron (down 6.7%) and broader AI valuation fears after OpenAI delayed its IPO to 2027 and Apple hiked device prices. Oil prices dropped back to pre-Iran war levels, lifting consumer stocks, while healthcare surged 1.5% on Eli Lilly's EMA boost. The Dow slipped only 0.09% as defense and industrial names offset tech weakness.

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Semiconductor Index Plunges 5.3% as AI Selloff Intensifies on OpenAI Delay and Apple Price Hikes The PHLX chip index tumbled 5.3% Friday and posted a 7.9% weekly loss as AI-related stocks extended their pullback. Worries about AI spending returns were compounded by reports that OpenAI is delaying its highly anticipated IPO until 2027, while Apple's memory-led price hikes raised demand concerns. Micron Technology reversed from a 15% surge on record earnings to close down 6.7%. 1 2 3 4

Oil Prices Drop to Pre-Iran War Levels, Boosting Consumer Stocks and Easing Inflation Fears Brent crude fell 3.8% to $72.60, wiping out gains since the U.S.-Iran conflict began and returning to levels before the Strait of Hormuz closure. The drop benefited airlines like American Airlines (up 1.7%) and added to hopes that inflationary pressure from energy costs may be peaking. Treasury yields also eased slightly on the news. 2 5 6

Healthcare Surges as EMA Recommends Eli Lilly Drugs; Sector Rotation Accelerates Healthcare stocks led the S&P 500 with a 1.5% gain after a European Medicines Agency committee recommended multiple drug approvals, including for Eli Lilly, which jumped 7.1%. The move underscored a rotation out of overheated tech/AI names into defensive sectors as investors seek stability amid AI valuation concerns. 2 7 8