U.S. Markets Tread Carefully as Chip Stocks Stage a Recovery

The S&P 500 shed 0.19% to reach 7443.28, while the Nasdaq Composite saw a marginal decline of 0.05%. Markets largely ignored the unveiling of Alibaba’s new Qwen3.8 Max AI model, a departure from the panic that followed Moonshot AI’s recent announcement. Analysts attribute this calm to a growing investor confidence in the long-term competitive landscape, where firms with deep resources like Alibaba may hold an advantage. Alibaba shares climbed 4.7% following the news.

Energy markets remained volatile as Brent crude briefly breached $90 a barrel in the wake of U.S. strikes on Iranian infrastructure. Prices retreated after Tehran signaled an openness to mediation, though the impact was felt at the pump, with the national average for a gallon of gasoline topping $4. Elsewhere, legal hurdles stalled the $81 billion merger between Warner Bros. Discovery and Paramount Skydance, while AMC Entertainment shares surged 27% on strong revenue growth. Meanwhile, in London, Andy Burnham assumed the role of prime minister, the nation's sixth leader in seven years, as the pound firmed on expectations of a conservative fiscal pivot.