Public Markets 8 Hours

Last updated: July 17, 2026, 5:30 PM ET

AI and Chip Stocks Face Selloff Amid Chinese Competition and Leveraged Fund Woes

Shares in semiconductor stocks, shedding a significant portion of their recent gains as a surprise breakthrough from China's Moonshot AI sent ripples through global markets. The AI and semiconductor sector, once a favored investment, experienced a brutal week, with a closely watched index of chip stocks falling sharply and unwinding a rally that saw the gauge more than double in three months. This downturn also impacted retail traders who had crowded into leveraged funds. While the specific impact of Moonshot's Kimi model is still unfolding, its unveiling has about China's growing prowess in artificial intelligence and its potential threat to American tech dominance. Meanwhile, surpassed Nvidia as the world's most valuable company, escaping the broader AI sell-off that has hit chipmakers.

Big Tech Taps Bond Market for AI Infrastructure, While Meta Explores Cloud Expansion

Major technology firms, including Oracle, are turning to the bond market to finance the construction of vast data centers required to support the burgeoning artificial intelligence industry. This move signals the immense capital expenditure needed to fuel AI advancements. In parallel, Meta is reportedly in talks for a data center deal worth up to $10 billion, as the social media giant considers launching its own cloud business and invests heavily in infrastructure. These developments underscore the significant financial commitment required to build and maintain the digital backbone of AI.

Geopolitical Tensions and Supply Chain Disruptions Drive Oil Prices Higher

Hedge funds have at the fastest pace in nearly a decade, as escalating tensions between Iran and the U.S. have disrupted shipping in the Persian Gulf. Shipping traffic has neared a halt, pushing oil prices to their highest level in a month. Despite increased drilling activity in the U.S., which has seen the longest streak without a drop in rig count since 2022, the ongoing conflict continues to impact energy supply expectations. Argentina's Neuquen province, however, is preparing to pitch its first U.S. bond since 2017, capitalizing on a shale oil boom.

Treasuries Advance on Inflation Optimism, Dollar Hedging Costs Decline

The Treasury market as supportive inflation data overshadowed a rebound in oil prices, leading traders to largely abandon bets on a July Federal Reserve interest-rate hike. Concurrently, the cost of hedging against dollar fluctuations has, suggesting traders anticipate stability in the world's reserve currency despite ongoing global uncertainties. Separately, Comex gold settled lower for the week, though it saw a slight uptick on Friday, while silver also posted a modest gain.

Corporate Dealmaking and Market Moves

Telecom Italia's board is leaning toward endorsing Poste Italiane's €10.8 billion takeover offer, viewing it as fair value and unlikely to seek a higher price. In the luxury sector, Italian authorities have searched Chanel offices as part of a labor abuse probe, with the company cooperating and terminating a subcontractor relationship. Anglo American has identified a consortium led by former De Beers boss Gareth Penny as the preferred bidder for its diamond business. Meanwhile, BASF is seeking banks to lead the IPO of its €20 billion agrichemical unit, potentially marking one of the largest offerings in Frankfurt. Foundever Group has reached an agreement with creditors to.

Biotech Firms Eye IPOs Amid Market Activity

Latigo Biotherapeutics Inc. has filed for an initial public offering, joining a growing number of biotechnology firms considering going public this quarter. This move signals continued investor interest in the biotech pipeline. In other market news, Money Supermarket is set to launch an investment platform, entering a competitive landscape.

Wildfires Continue to Impact North America; Environmental Scrutiny Affects Utilities

Wildfires in Canada, particularly in Ontario, continue to rage, prompting evacuations and. The complex interplay of fires, smoke, and weather patterns is creating uncertainty about the duration of the smoke event. In Chile, severe winter storms have. Meanwhile, South East Water has warned of struggles to secure new funding, citing public and political scrutiny for impacting investor confidence. The EU is also facing pressure regarding methane rules, with a potential delay in fines for breaking pollution regulations.

US Cities and Businesses Navigate Infrastructure and Growth Needs

San Antonio is preparing to borrow nearly $1 billion for a significant airport expansion project, reflecting the city's rapid growth. In the fast-food industry, a parasite outbreak linked to lettuce has, halting Sweetgreen's skid after regulators traced the issue to shredded iceberg lettuce. Walmart continues to shuffle its executive team, with the chief operating officer for Walmart U.S. set to depart. Heineken is exploring innovative solutions like heat batteries to generate steam for brewing, aiming to reduce emissions.

Regulatory Landscape and Corporate Governance Under Scrutiny

The SEC is expected to proceed with changes to quarterly earnings rules despite significant public backlash, a move that has long been supported by former President Trump. Separately, a hedge fund has with the SEC after a "gag rule" was lifted. Elon Musk's X and music publishers have agreed to dismiss lawsuits against each other, though the reasons for the retreat remain undisclosed. PwC partners are reportedly set for near-record annual pay, despite a challenging consulting market.

Other Noteworthy Developments

Boeing is working to after repeated crises, opening a new production line for its 737 Max to meet demand, though orders for new planes lag behind rival Airbus. The Pentagon has temporarily restored its escort policy for journalists visiting its facilities. Martin Shkreli has re-emerged, focusing on shorting stocks and taking on various entities. In a lighter note, Hidden Valley Ranch has become a phenomenon among visitors to a major sporting event in the U.S.