By STAN CHOE, AP Business Writer<\/p>\n
NEW YORK (AP) \u2014\u00a0More swings<\/a>\u00a0for computer chip companies and other winners of the\u00a0artificial-intelligence<\/a>\u00a0boom are pulling stock markets in their wake Friday. Oil prices, meanwhile, continue to climb because of\u00a0the war with Iran<\/a>.<\/p>\n The S&P 500 fell as much as 1.4% at the start of trading before trimming its loss to 0.6%. It\u2019s on track for its first losing week in the last three and only its third since March, just a couple days after it\u00a0climbed within 0.5% of its all-time high<\/a>.<\/p>\n The Dow Jones Industrial Average was down 25 points, or less than 0.1%, as of 10:30 a.m. Eastern time, after veering between an early loss of 566 points and a modest gain. The Nasdaq composite fell 1.3%.<\/p>\n Chip stocks once again were at the center of the shakiness. They\u2019ve been\u00a0under pressure for weeks<\/a>\u00a0on worries that their prices shot too high and that voracious demand for computer memory and processors may be unsustainable if AI ends up producing less profit and productivity than promised.<\/p>\n Applied Materials sank 4.6% to trim its surge for the year so far to 108%. Micron Technology dropped nearly 6% in the first 15 minutes of trading, but it quickly erased its loss and then rose 1.6% to help the market trim its losses.<\/p>\n Earlier in the morning, tech sold off worldwide. Indexes tumbled 6.5% in Taipei, 4% in Tokyo and 3% in Shanghai as stocks like Taiwan Semiconductor Manufacturing Co. dropped 7.3%.<\/p>\n South Korea\u2019s stock market was closed for a holiday, offering some respite, if only temporary. It\u2019s been at the center of the AI swings because it\u2019s dominated by two huge tech companies, Samsung Electronics and SK Hynix. This past week alone, Seoul\u2019s Kospi stock index had one day where it surged 6.2% and two others where it sank 6.4% and 8.9%.<\/p>\n News of a\u00a0Chinese open-sourced AI model<\/a>\u00a0by startup Moonshot, Kimi K3, further shook markets. Similar to when China\u2019s\u00a0DeepSeek<\/a>\u00a0announced its AI model in early 2025, another low-cost rival to big Western AI models like ChatGPT and OpenAI could potentially hurt demand for computer chips and other components.<\/p>\n European stock indexes, which have less of an emphasis on AI and tech, had milder moves.<\/p>\n Adding to the pressure on Wall Street Friday were drops for several stocks following their latest earnings reports. It\u2019s a departure from much of the rest of the week, when companies like Goldman Sachs and BlackRock jumped after delivering better profits for the spring than analysts expected.<\/p>\n Netflix sank 8.6% after its\u00a0revenue for the latest quarter<\/a>\u00a0fell just short of analysts\u2019 expectations, even though its profit was bigger than expected. Its forecasts for upcoming revenue and profit in the summer also fell below expectations.<\/p>\n Intuitive Surgical, a maker of robotic surgical systems, dropped 11.1% despite topping expectations for the latest quarter. Analysts pointed to worries about slowing procedure growth because of the\u00a0expiration of enhanced tax credits<\/a>\u00a0that helped lower the cost of health insurance for many Affordable Care Act enrollees.<\/p>\n Elon Musk\u2019s SpaceX<\/a>\u00a0fell 4.2% and touched its lowest level since\u00a0its stock began trading on the Nasdaq<\/a>\u00a0just over a month ago. The owner of the xAI business has been swept up in the swings of AI stocks, and it had to\u00a0abort a test flight of its mega Starship rocket<\/a>\u00a0Thursday within a second or so from blasting off.<\/p>\n More climbs for oil prices also pressured the stock market.<\/p>\n The price for a barrel of Brent crude, the international standard, rose 3.3% to $86.91, up from roughly $76 a week ago.<\/p>\n Oil prices are near their highest levels in a month because of worries that the war with Iran will keep oil tankers out of\u00a0the Strait of Hormuz<\/a>\u00a0and block shipments of crude from the Persian Gulf to customers worldwide. The United States expanded\u00a0its airstrike campaign<\/a>\u00a0against Iran early Friday by hitting more bridges and collapsing a tower at a key Iranian port.<\/p>\n