Chip Stocks Sink 5% • Gold Rebounds • SoftBank Drops 13%

Market Overview

Friday's market action was dominated by weakness in semiconductors and energy. Semiconductor stocks suffered a sharp selloff, with the semiconductor index plunging more than 5% in a single session. Shares of ON Semiconductor tumbled over 20%, while Qualcomm dropped 7.6%. Western Digital, Seagate, and SanDisk each fell more than 10%. Nvidia and Google both lost nearly 9% for the week, while Microsoft bucked the trend, gaining nearly 6%, highlighting a growing divergence between hardware and software sectors.

Crude oil prices also moved sharply lower. WTI crude fell 3.74% to $69.23 per barrel, bringing its weekly loss to 8.73%. Brent crude declined 4.34% to $71.99 per barrel and ended the week down 10.65%.

Precious metals rebounded on the day. COMEX gold rose 1.2% to $4,078.70 per ounce, silver gained 1.49% to $59.22 per ounce, and New York copper advanced 1.17%. Despite the daily recovery, all three commodities still finished the week in negative territory.

Chinese equities remained under pressure, particularly in the technology sector. The ChiNext Index fell more than 4%, the Shenzhen Component Index dropped 3.44%, and the Shanghai Composite declined 2.26%. The Hang Seng Tech Index also lost more than 3%.

In the U.S., inflation concerns resurfaced after May PCE inflation accelerated to 4.1% year-over-year, while Core PCE came in at 3.4%. Meanwhile, SoftBank shares plunged 13%, with investors closely monitoring liquidity risks tied to the company's reported $65 billion market exposure. Bitcoin briefly climbed back above the $60,000 level during intraday trading.

Major U.S. equity indices closed modestly lower. The S&P 500 slipped 0.05%, the Nasdaq Composite fell 0.24%, and the Dow Jones Industrial Average edged down 0.09%.

Key Themes to Watch● Semiconductor Pullback: Correction or Cycle Peak？

With semiconductor stocks plunging more than 5% in a single session and ON Semiconductor alongside several memory manufacturers leading the declines, investors are increasingly debating whether this is a healthy correction or an early warning sign of a cyclical peak.

AI-driven computing demand remains robust, and the memory pricing upcycle continues. However, future market direction will depend heavily on upcoming earnings reports and capital expenditure guidance from industry leaders. Any indication of slowing demand could trigger an outsized market reaction.

● Falling Oil Prices: Inflation Relief vs. Growth Concerns

WTI and Brent crude posted weekly losses of 8.73% and 10.65%, respectively, as fading geopolitical risk premiums combined with demand concerns to push energy prices lower.

While declining oil prices may help ease inflationary pressures, a rapid drop could also signal weakening expectations for global economic growth. Upcoming inventory reports and demand data will be critical in determining whether this pullback reflects improving supply conditions or deteriorating consumption trends.

Events to WatchU.S.-Iran Talks in Qatar

The United States and Iran are reportedly scheduled to hold talks in Doha, Qatar, on June 30.

ECB Annual Central Banking Forum

The European Central Bank's Annual Forum on Central Banking will take place in Portugal from June 29 to July 1.

Major Korean Investment Announcements

South Korea is expected to unveil major investment projects involving Samsung Group and SK Group.

2026 Beijing Space Computing Power Conference

The 2026 Beijing Space Computing Power Conference will be held from June 29 to June 30, focusing on developments in aerospace computing infrastructure and AI-driven computing capabilities.