Tech Rout Deepens as Semiconductor Stocks and Netflix Slide

The PHLX Semiconductor Index has now shed 20% of its value from its June peak, fueled by growing skepticism regarding the sustainability of AI-related infrastructure spending. Market anxiety intensified following the release of Moonshot AI's Kimi K3, a model boasting 2.8 trillion parameters that claims to surpass leading U.S. systems. Meanwhile, Netflix shares tumbled 7.3% to $68.95 after the company projected its weakest year-on-year revenue growth since late 2023. Bank of America analysts maintained a buy rating but slashed their price target to $105 from $125, noting that the results failed to move the needle on long-term growth debates.

SpaceX continued its downward trajectory, dropping 5.4% and closing below its $135 IPO price for a second consecutive session. The decline follows a failed Starship test launch, underscoring the technical hurdles facing the firm as it attempts to justify a valuation that has shed over $1 trillion since mid-June. Conversely, energy markets reacted sharply to U.S. airstrikes in Iran, pushing Brent crude up 16% over the week. While the University of Michigan's consumer sentiment index rose to 54.4 in July, analysts warned that rising fuel costs could quickly reverse these modest gains as the market looks ahead to earnings reports from Alphabet, IBM, and Tesla next week.