Chip Stocks Head into Bear Market, New US Strikes on Iran, More

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Bloomberg News Now 7 min 4 speakers 5 chapters transcribed 2 months ago

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What is the main topic discussed in this episode?

Randall Williams 0:01

Follow the money in the world of sports every week on the Bloomberg Business of Sports podcast. Hello, I'm Randall Williams. Join Michael Barr, Vanessa Perdomo, Maglione, and me as we take you inside the deals, decisions, and innovations that power this multi-billion dollar industry. Plus, we'll speak with executives, athletes, and visionaries that are transforming sports across the globe. Subscribe to the Bloomberg Business of Sports podcast on Apple, Spotify, or anywhere you listen.

Ed Kalecki 0:30

News when you want it with Bloomberg News Now. I'm Ed Kalecki. A losing week for the S&P 500 index with chip stocks moving into a bear market. We get the story from Bloomberg's Charlie Pellett.

Charlie Pellett 0:43

The SOX, the Philadelphia Stock Exchange Semiconductor Index, is now down 20% from a recent high, and that meets the definition of a bear market. Stocks finished the week lower. Semis dipped following the reveal of an AI model from a Chinese startup. The S&P 500 index was down 1.5% on the week, snapping two straight weeks of gains. The Dow fell for a second week down 0.9%. NASDAQ this week down 2.9%. In New York, Charlie Pellett, Bloomberg Radio.

Ed Kalecki 1:13

China's Moonshot AI brought out its latest addition comparable in many respects to the best American models. Bloomberg Senior Technology Editor Mike Shepard discussed its significance on balance of power.

Mike Shepard 1:24

It really is another step level change in China's effort to not only keep up with the U.S., but really assert its own global dominance in this space. We did see Xi Jinping, president of China, lay out his vision and his country's vision for trying to assert that leadership worldwide.

Ed Kalecki 1:44

Bloomberg Senior Technology Editor Mike Shepard. The U.S. and Iran traded attacks again on Friday, pressuring oil prices and making a quick return to the fragile ceasefire deal signed last month even less likely. U.S. Central Command said a new round of airstrikes were underway beginning at 3 p.m. Eastern on Friday with the goal of degrading Iranian military capabilities. A week of back and forth strikes by both sides has expanded beyond strictly military targets to include bridges, utilities and port facilities. CENTCOM earlier confirmed that it had destroyed a surveillance tower at the Iranian port of Chabahar on Thursday, saying it was part of a string of maritime outposts. along the Gulf of Oman that Tehran used to track and target commercial vessels.

Ed Kalecki 2:27

Produce supplier Taylor Farm says it's recalling all iceberg lettuce in the U.S. sourced from central Mexico. After a farm there was linked to a diarrhea-causing parasite outbreak that sickened thousands in Michigan and nearby states. Taylor Farm said its Mexican subsidiary is voluntarily removing the product on information provided by the US Food and Drug Administration.

Why are chip stocks entering a bear market and what does the SOX drop mean?

Ed Kalecki 2:47

It added that no other Taylor Farms products are affected by the recall and that its branded salad kits sold in supermarkets don't contain iceberg lettuce. SpaceX shares tumbled on Friday, erasing more than $1 trillion in market value from the rocket an artificial intelligence giant's all-time high. The stock fell 5.4 percent to $123.99 per share, giving the company a market value of $1.63 trillion. The value stood at $2.64 trillion at the close on June 16th. its third day of trading. Elon Musk's company initially rallied after the largest initial public offering in history, but has lost ground. It is trading below the $135 IPO price. Friday's decline comes after the company aborted a launch of its Starship rocket due to an engine issue.

Ed Kalecki 3:40

Apple and the U.S. Justice Department are in early discussions about settling a 2024 lawsuit that alleges the iPhone maker violated its anti-trust laws. No trial date has been set in the case. Apple has made multiple offers this year to the Justice Department to bring the case to a close. Apple declined to comment. The Justice Department did not immediately respond to a request for comments. At least 178 million Americans are breathing in smoky air, enduring high heat or contending with catastrophic flooding. That's more than half of the U.S.