Stock Market Daily ·
Semiconductor Bear Market Confirmed as AI Rout Wipes Out Weekly Gains
Wall Street ended sharply lower on Friday, capping a losing week as the semiconductor index confirmed a bear market, falling over 20% from its June peak. The selloff was triggered by a startling Chinese AI breakthrough and deepening fears over excessive AI spending, while Netflix plunged on weak guidance and oil prices surged on Iran tensions.
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Semiconductor index enters bear market as China's Kimi AI rattles investors. The PHLX Semiconductor Index (SOX) closed 20.2% below its record, meeting the definition of a bear market. Fears of a 'DeepSeek 2.0' scenario gripped markets after Chinese startup Moonshot AI unveiled its Kimi K3 model, which rivals US frontier AI with fewer advanced chips. The Dow fell 406 points, the S&P 500 lost 1%, and the Nasdaq slid 1.4%. 12345678910
Netflix stock tumbles 10% on weak revenue forecast and viewership transparency. Netflix shares plunged to near two-year lows after the streaming giant forecast another quarter of slowing revenue growth and announced it would scale back reporting viewership data. Analysts pointed to a lackluster content lineup and concerns that growth has peaked as key factors behind the sell-off. 111213
Fed's Hammack warns rate hike may be needed as inflation stays stubborn. Cleveland Fed President Beth Hammack joined a growing chorus of policymakers arguing for a potential rate increase to combat persistent inflation. The hawkish comments set the stage for a contentious debate at the Fed's July 28-29 meeting, though markets still largely expect rates to remain unchanged. 14
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