Updated
Updated · CNBC · Jun 25
S&P 500 Heads for 1% Weekly Loss as OpenAI IPO Delay Hits Chip Stocks
Updated
Updated · CNBC · Jun 25

S&P 500 Heads for 1% Weekly Loss as OpenAI IPO Delay Hits Chip Stocks

3 articles · Updated · CNBC · Jun 25

Summary

  • The S&P 500 rose 0.3% Friday but still tracked for a weekly decline of more than 1%, while the Nasdaq was headed for a 4% drop.
  • A New York Times report that OpenAI may delay its IPO until next year—after weak SpaceX post-debut performance and AI-share volatility—sparked worries that AI infrastructure spending could slow.
  • Chipmakers led the retreat: Micron and AMD each fell 2%, Intel lost more than 3%, and Asia sold off sharply with SoftBank down over 12% and South Korea’s Kospi tumbling 5.81%.
  • Money rotated into defensive sectors instead, lifting healthcare, consumer staples, financials and utilities; Eli Lilly jumped nearly 6% and Johnson & Johnson gained more than 3%.
  • Better consumer-sentiment and inflation data supported Friday’s rebound, but strategists said the tech rotation could last into July even as they remained bullish on AI and chip demand over 12 months.

Insights

Is the AI stock sell-off a brief correction or the start of a 2000-style tech bubble burst?
With OpenAI's IPO delayed, are we entering a funding winter for the next wave of innovative AI startups?