Wall Street ended sharply lower on Friday as AI-related technology stocks faced renewed selling pressure alongside a surge in oil prices. The S&P 500 declined 1.09 percent to 7,659.44 points, while the Nasdaq fell roughly 2.15 percent. The PHLX chip index dropped 3.8 percent, marking its eighth straight day of declines. CoreWeave fell 12 percent over five sessions and Broadcom dropped about 4.5 percent. Investors grew cautious amid concerns about AI company debts and rising borrowing costs, with Rob Haworth from US Bank Wealth Management noting that high oil prices weigh on stock valuations.
Chinese tech firms took the hardest hits in the global AI sell-off. The Star50 Index has dropped nearly 40 percent over the first half of the year. Chipmakers MetaX and Moore Threads each lost roughly half their value. Foreign investors pulled about 90 billion yuan from Chinese stocks during the third quarter, reflecting growing unease about the AI trade.
DeepSeek launched its new model, DeepSeek-V4.1-Flash-1017, on its website, app, and API, describing it as a Pareto improvement in both performance and cost. The model scored 77.0 on DeepSWE v1.1, beating Claude Opus 5, which scored 74.0. It also outperformed Kimi K3, GLM 5.3, and GPT 5.6-Sol on nearly all benchmarks. DeepSeek opened its Search and Fetch APIs to all developers. The model features 552B backbone parameters and 196B Engram parameters with a 1M token context window.
Anthropic received a double B credit rating from Kroll Bond Rating Agency in June, moving it closer to investment grade status. Achieving investment grade would lower the AI lab's borrowing costs. KBRA used limited financial data and an in-house risk score for the assessment. Both Anthropic and KBRA declined to comment on the matter.
Alexandr Wang, 29, became Meta's chief AI officer after a brief 44-minute call with Mark Zuckerberg. Two days later, Wang sent Zuckerberg a detailed strategy memo. Meta now expects massive spending on AI research in 2026. Wang built a core team of fewer than 200 researchers at Meta Superintelligence Labs. Zuckerberg described the recruitment effort as a supernova aimed at poaching top talent from rivals like Anthropic and Google.
President Trump's Super Intelligence Force will study AI risks including cybersecurity and model control. The group plans to ask the President's Council of Advisers on Science and Technology to write a report and will coordinate with the Department of Justice and Federal Trade Commission. Trump has opposed new AI regulation, and the task force signals a hands-off approach to governing the technology.
Martin Shkreli identified three private startups, Neurofos, Opticore, and Lumi, as potential challengers to NVIDIA through photonic matmul core technology. He said these chips could outperform what Nvidia currently offers. Shkreli revealed he is personally exploring this field, adding a new dimension to the competitive hardware race.
UK Chancellor John Healey indicated plans to raise taxes on banks as a way to control the budget deficit. The approach would avoid breaking Labour's promise not to raise income tax or VAT. A report suggested decisions about the financial services sector are needed, with the Budget expected in about two weeks. Meanwhile, Republicans see an opportunity to boost AI development in red states, where cheap land, strong grid capacity, and friendly regulations favor data center construction.
Key Takeaways
- <li>Wall Street fell sharply as AI stocks sold off; the S&P 500 dropped 1.09% and the Nasdaq fell ~2.15% amid debt and borrowing cost concerns</li>
- <li>CoreWeave lost 12% over five sessions and Broadcom fell ~4.5% as chip stocks endured their eighth straight day of declines</li>
- <li>China's Star50 Index dropped nearly 40% in the first half of the year; MetaX and Moore Threads each lost about half their value</li>
- <li>DeepSeek V4.1-Flash-1017 scored 77.0 on DeepSWE v1.1, beating Claude Opus 5 (74.0) and outperforming Kimi K3, GLM 5.3, and GPT 5.6-Sol</li>
- <li>Anthropic received a double B credit rating from Kroll Bond Rating Agency, edging closer to investment grade status</li>
- <li>Alexandr Wang, 29, became Meta's chief AI officer and built a core team of fewer than 200 researchers at Meta Superintelligence Labs</li>
- <li>Trump's Super Intelligence Force will study AI cybersecurity and model control risks while coordinating with the DOJ and FTC</li>
- <li>Martin Shkreli identified Neurofos, Opticore, and Lumi as photonic chip startups that could challenge NVIDIA</li>
- <li>UK Chancellor plans to raise bank taxes to control the budget deficit without raising income tax or VAT</li>
- <li>Red states like Virginia's Loudoun County expect $1.3 billion in data center taxes next year, highlighting AI infrastructure growth</li>
Wall Street drops amid AI trade fears and rising oil prices
Wall Street fell sharply on Friday as AI-related tech stocks faced heavy selling and oil prices jumped over 3 percent. CoreWeave dropped 12 percent and Broadcom fell 3.6 percent. The Nasdaq declined 2.19 percent to 26,128.13 points. Investors grew cautious due to concerns about AI company debts and higher borrowing costs.
Wall Street ends lower on AI worries and oil price surge
Wall Street ended sharply lower on Friday with renewed pressure on AI-related technology stocks. Oil prices rose more than 3 percent due to Middle East supply concerns. Rob Haworth from US Bank Wealth Management said high oil prices weigh on stock valuations. The S&P 500 declined 1.09 percent to 7,659.44 points.
Wall Street falls sharply as AI trade fears deepen
Wall Street ended sharply lower on Friday as AI-related stocks continued to sell off. The PHLX chip index sank 3.8 percent in its eighth straight day of declines. CoreWeave dropped 12 percent over five sessions while Broadcom fell 4.5 percent. The S&P 500 declined 1.09 percent to 7,659.44 points and the Nasdaq fell 2.15 percent to 26,140.03 points.
DeepSeek releases V4.1-Flash-1017 with improved benchmarks
DeepSeek released DeepSeek-V4.1-Flash-1017, a new model checkpoint available on its website, app, and API. The model scored 77.0 on DeepSWE v1.1, beating Claude Opus 5 which scored 74.0. It also opened Search and Fetch APIs to all developers. The model has 552B backbone parameters and 196B Engram parameters with 1M token context.
DeepSeek V4.1-Flash-1017 beats Claude Opus 5 on some tests
DeepSeek launched V4.1-Flash-1017 on its website, app, and API, calling it a Pareto improvement in performance and cost. The model beat Claude Opus 5 on DeepSWE v1.1, Automation-Bench, Agents' Last Exam, and Apex Bench. It also outperformed Kimi K3, GLM 5.3, and GPT 5.6-Sol on nearly all benchmarks. DeepSeek said the model is optimized for DeepSeek Harness and Tencent's CodeBuddy.
UK banks may face higher taxes as AI debt worries grow
UK Chancellor John Healey said decisions about the financial services sector are needed. A report suggests he plans to raise taxes on banks. This could help control the budget deficit without breaking Labour's promise not to raise income tax or VAT. The Budget is expected in about two weeks.
Anthropic nears investment grade rating ahead of IPO
Anthropic received a double B credit rating from Kroll Bond Rating Agency in June. The AI lab is close to reaching investment grade, which would lower borrowing costs. KBRA used limited financial data and an in-house risk score for the rating. Anthropic and KBRA declined to comment.
Republicans see chance to boost AI in red states
Democrats' opposition to AI and energy projects creates an opportunity for Republicans. Red states have cheap land, strong grid capacity and friendly regulations for data centers. Loudoun County, Virginia, expects $1.3 billion in data center taxes next year. The article argues Republicans should push pro-growth AI policies.
Chinese tech stocks fall as global AI trade struggles
Chinese firms are the biggest losers in the global AI sell-off. The Star50 Index has dropped nearly 40% this half year. Chipmakers MetaX and Moore Threads each lost about half their value. Foreign investors pulled about 90 billion yuan from Chinese stocks in the third quarter.
Trump AI task force to study technology risks
President Trump's Super Intelligence Force will study AI risks like cybersecurity and model control. The group will ask the President's Council of Advisers on Science and Technology to write a report. It will also create coordination with the Department of Justice and Federal Trade Commission. Trump opposes new AI regulation.
Alexandr Wang wins Zuckerberg trust for massive AI bet
Alexandr Wang, 29, became Meta's chief AI officer after a 44-minute call with Mark Zuckerberg. Wang sent Zuckerberg a detailed memo two days later outlining strategy. Meta now expects massive 2026 spending on AI research. Wang built a core team of fewer than 200 researchers at Meta Superintelligence Labs. Zuckerberg described the recruitment effort as a supernova to poach top talent from rivals.
Martin Shkreli says photonic chips could beat Nvidia
Martin Shkreli named three private startups that could challenge NVIDIA. He identified Neurofos, Opticore, and Lumi as companies making photonic matmul cores. These chips could outperform what Nvidia currently offers. Shkreli said he is personally exploring this field.
Sources
- Wall Street Tumbles as Worries About AI Trade and High Oil Prices Weigh
- Wall Street ends down; worries about AI trade and high oil prices weigh
- Wall Street ends sharply lower as AI trade worries weigh
- DeepSeek Just Released V4.1-Flash-1017, Scores 77.0 on DeepSWE, Opens Search API
- DeepSeek Launches V4.1-Flash-1017, Beats Claude Opus 5 On Some Benchmarks
- Transcript: Investors fret over AI debt
- Democrats are threatening US AI supremacy. Republicans should pounce.
- Chinese stocks turn biggest losers as global AI trade stumbles
- Trump's AI Task Force To Commission Report On Technology's Risks
- Croatia sets out €932 million plan for artificial intelligence development
- A 44-minute call and a memo: How Alexandr Wang won Mark Zuckerberg’s trust—and a $100 billion-plus AI bet
- Martin Shkreli Says New Photonic Chips Could Run Circles Around Nvidia
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