The chip-stock selloff intensified, pulling the tech-heavy Nasdaq down 1.4% and the S&P 500 by 1%. Investor concerns about sustained AI capital expenditures were amplified by China’s Moonshot AI, which unveiled its Kimi K3 model, potentially intensifying global competition and impacting shares of Intel, Applied Materials, Corning, and AMD.

Netflix shares plunged 7.3% after its second-quarter update failed to assuage fears of weakening viewer engagement. The company forecasted its smallest year-on-year revenue gain since late 2023 for the third quarter and will now release viewership reports annually instead of semi-annually, reducing data transparency.

Separately, SpaceX shares dropped 5.4%, contributing to a significant weekly decline after a Starship test flight was aborted due to engine issues. Meanwhile, the University of Michigan's sentiment index rose to 54.4 in early July, up from 49.5 in June, reflecting improved economic sentiment.