The Dow Jones Industrial Average reached a historic high of over 53,000 before falling 0.5% for the week, primarily influenced by renewed tensions between the U.S. and Iran, which caused fluctuations in oil prices.
The semiconductor sector, a key player in the AI trade, saw significant volatility; the VanEck Semiconductor ETF initially rose but later dropped nearly 4% after disappointing earnings from Samsung and news of competition from China's DeepSeek.
However, a multiyear partnership announcement between Apple and Broadcom, valued at over $30 billion, helped stabilize the sector, with Broadcom shares rising nearly 5%. The semiconductor ETF ultimately gained 2.5% on Thursday, led by strong performances from Micron and Sandisk.
Meanwhile, Meta Platforms made strides in monetizing its AI investments, launching new AI tools and announcing plans to manufacture its custom AI chip, which contributed to a 15% increase in its stock for the week.
On the other hand, oil prices surged due to geopolitical tensions, with WTI crude reaching $76 a barrel, impacting energy stocks positively while raising concerns for companies like Honeywell Aerospace, which could see reduced demand for aftermarket services due to higher fuel costs.
Overall, the week underscored the dual pressures of technological advancements in AI and the volatility of oil markets on investor sentiment