US equity markets extended losses into midday Friday as semiconductor stocks tumbled toward a bear market on AI spending concerns and Chinese AI breakthroughs. Netflix cratered on disappointing Q3 guidance, while Middle East tensions pushed oil higher and rattled risk sentiment.
→ Semiconductor earnings next week—Alphabet earnings critical; market awaiting clarity on hyperscaler capex plans and whether higher spending reflects demand or necessity
→ Energy markets into close as US/Iran tensions evolve; additional strikes could spike oil volatility and inflation expectations
→ Tech rotation sustainability—eight of 11 S&P 500 sectors positive Thursday despite broad index decline suggests some stability below surface, but momentum remains fragile