OpenAI IPO Delay Rumors Trigger AI Chain Sell-Off, SoftBank Plunges 13%
Alina Collins
Reports that OpenAI may postpone its listing to next year hammered AI-linked stocks globally on Friday — SoftBank fell 13%, dragging Japan's benchmark down over 4%, while the Philadelphia Semiconductor Index dropped roughly 5%. This means → the market is repricing its confidence in AI's monetization timeline.
How deep did the selloff go?
Japan's benchmark index fell over 4%; SoftBank's 13% plunge was the biggest drag. This means → SoftBank's heavy OpenAI exposure made it the market's primary pressure point for the delay news.
South Korea's Kospi dropped nearly 6%, with Samsung and SK Hynix falling in tandem. In plain terms = anything tied to AI memory chips got hit on Friday.
Micron slid nearly 7%, giving back gains from its strong Wednesday earnings — good results could not withstand the sentiment stampede.
Did the broader U.S. market take much damage?
The Philadelphia Semiconductor Index fell about 5%; the Roundhill Memory ETF dropped 6.5% — the AI hardware chain bore the brunt.
Yet major U.S. indices barely moved: the Nasdaq dipped 0.2%, while the Dow and S&P 500 each lost 0.1%.
This reflects a highly concentrated selloff in AI and semiconductors; large-cap heavyweights cushioned the broader market.
Why did oil prices fall despite Middle East escalation?
Brent crude futures dropped roughly 4% to just below $72 a barrel, even as Middle East tensions intensified.
Iran struck a Singapore-flagged cargo vessel in the Strait of Hormuz on Thursday; Trump said Friday the attack violated the ceasefire agreement.
In plain terms = the market currently trusts the weak-global-demand narrative more than the geopolitical premium — fear of supply disruption has not yet overridden demand-side concerns.
Where do consumer confidence and inflation expectations stand?
The University of Michigan consumer sentiment index rose to 49.5 in its June final reading, up from 44.8 in May, lifted by falling gasoline prices.
Long-term inflation expectations fell from 3.9% last month to 3.3% in June. This means → household anxiety about future prices has eased, but the absolute level remains above the Fed's comfort zone.
The ceasefire news and lower oil prices jointly improved household mood — but that improvement rests on fragile geopolitical assumptions.
What is the Fed likely to do next?
Minneapolis Fed President Kashkari, a voting FOMC member this year, said inflation risks lead him to expect one rate hike before year-end.
His comments came one day after the Fed's preferred inflation gauge posted its highest reading since April 2023.
This reflects the Middle East conflict pushing energy prices higher as an important backdrop to rising inflation — Kashkari's hawkish stance did not come from nowhere.
How is SpaceX performing after its IPO?
The largest IPO in history saw its shares dip below the $150 offer price intraday on Friday, a sign that initial enthusiasm is fading.
The stock ultimately closed roughly flat at about $153.
Under FTSE Russell's semi-annual rebalancing schedule, SpaceX was formally added to the Russell 1000 Index after Friday's close. This means → passive funds will be forced to buy in, potentially providing short-term support for the stock.
Content is for reference only, not financial advice.