AI Selloff Deepens as OpenAI IPO Delay and Fed Jitters Rattle Markets

U.S. stocks ended a turbulent week with the S&P 500 and Nasdaq posting losses as a deepening rout in artificial-intelligence stocks overshadowed gains in healthcare and energy. The selloff was fueled by reports that OpenAI may delay its IPO until 2027 and by May's PCE inflation reading of 4.1% year-over-year, which reinforced hawkish Federal Reserve expectations. The Nasdaq fell over 4% for the week, while the Dow eked out a small gain, and healthcare led a defensive rotation. Weekly outflows from U.S. equity funds hit $3.53 billion, with tech funds losing nearly $20 billion.

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AI and Chip Stocks Routed as OpenAI IPO Delay and Chip Cost Fears Spark Global Selloff Technology stocks suffered a severe rout after a report that OpenAI may postpone its IPO until 2027 and Apple's iPad/MacBook price hikes exposed soaring chip costs. The Philadelphia Semiconductor Index plunged 4.8% on Friday and 7.9% for the week, its steepest weekly loss since early April. Micron Technology fell 6.7%, and SoftBank shares tumbled 13% in Tokyo. The Nasdaq extended its losing streak to five sessions, closing the week down more than 4%. 1 2 3 4

S&P 500 Slides Below 50-Day MA as Nasdaq Drops Fifth Straight Session The S&P 500 slipped 0.05% to 7,353.95, falling below its 50-day moving average, while the Nasdaq lost 0.24% to 25,297.62 for its fifth consecutive decline. The Dow dipped 44 points to 51,876.11. Market breadth was positive—advancers led decliners on the S&P 500 by 1.8-to-1—but AI-heavy indexes remained under pressure. U.S. equity funds saw $3.53 billion in outflows for the week ending June 24, with tech funds shedding nearly $20 billion. 3 5 6

Healthcare Leaders Defensive Rotation as Moderna Surges 13% on Science Day Healthcare was the top S&P 500 sector, gaining 2.5% on Friday, driven by Moderna's 12.6% jump to $67.27 after its Science Day presentation highlighted new pipeline assets including in vivo CAR-T. European Medicines Agency recommendations lifted Eli Lilly shares 7.1%. The defensive rotation came as tech stocks sold off, with the SPDR S&P Biotech ETF up 2.45% and the iShares Nasdaq Biotechnology ETF rising 1.99%. 7 8 9

Oil Prices Retreat to Pre-Iran Conflict Levels, Easing Pressure on Transport Stocks Brent crude oil dropped 3.8% to $72.60, returning to levels seen before the U.S.-Israel strike on Iran and the Strait of Hormuz closure. The decline boosted transport and airline stocks, with American Airlines Group climbing 1.7%. Lower oil prices also helped the Dow post a modest weekly gain, insulating it from the broader tech-led losses. 4 10

GameStop Shares Jump After-Hours on FY26 EBITDA Outlook Hike to $600M GameStop (GME) shares gained 2% after-hours Friday after the company said it expects FY26 adjusted EBITDA to exceed $600 million, nearly double the $345.4 million in FY25. The company reiterated its focus on the proposed acquisition of eBay. CEO Ryan Cohen recently declined a performance-based pay package to concentrate on the deal. Retail sentiment on Stocktwits flipped to bullish from bearish. 11

BlackBerry Shares Gap Up After Earnings Beat with Revenue Up 26% Year-over-Year BlackBerry (NYSE: BB) shares gapped up to $9.72 from a prior close of $8.62 after reporting fiscal Q1 EPS of $0.04, beating estimates of $0.03, and revenue of $152.9 million versus the $139.81 million consensus. Revenue rose 25.6% year-over-year. The company posted its first cash-positive quarter in nine years and raised its FY2027 EPS guidance to $0.16-$0.20. Shares last traded at $10.44. 12