US Stocks Close: Nasdaq Falls for Fifth Day, Philly Semiconductor Index Drops Over 5%; OpenAI Postponing Listing Date Triggers Selloff in Chip, Memory Stocks

TradingKey - OpenAI may postpone its initial public offering (IPO) until after next year. With the market expecting weakening demand for AI infrastructure, chip and memory stocks were sold off. The three major indexes closed down across the board, with the Nasdaq Composite falling for a fifth consecutive day.

At the close, the Dow Jones Industrial Average fell 0.09% to 51,876.11; the Nasdaq Composite slid 0.24% to 25,297.62; and the S&P 500 index edged down 0.05% to 7,354.02.

Tech stock performance

Microsoft (MSFT) rose 5.71%, Apple (AAPL) climbed 3.14%, Amazon (AMZN) gained 2.50%, Meta Platforms (META) advanced 1.36%, Tesla (TSLA) rose 1.22%, and SpaceX (SPCX) edged up 0.15%. On the downside, Broadcom (AVGO) fell 3.67%, Google (GOOGL) declined 1.84%, Nvidia (NVDA) dropped 1.64%, and TSMC (TSM) slipped 0.61%.

[Source: FutuBull]

The Philadelphia Semiconductor Index took a broad hit, falling 5.29% to close at 13,203.57. Qualcomm (QCOM) dropped 7.57%, Arm Holdings (ARM) fell 3.87%, Intel (INTC) declined 3.42%, and Advanced Micro Devices (AMD) shed 2.06%.

Memory stocks led the decline, with Western Digital (WDC) dropping 13.17%, Seagate Technology (STX) falling 12.24%, SanDisk (SNDK) declining 10.46%, and Micron Technology (MU) sliding 6.69%.

Tech giants are starting to explore the "memory-reduction" route. Qualcomm highlighted its "High-Bandwidth Compute" architecture at an investor conference this week, aiming to reduce reliance on HBM in AI computing through new system designs. It was also previously reported that Nvidia is adjusting some designs of its next-generation Vera Rubin platform to lower overall memory requirements. AI chip company Cerebras has made "HBM-free" its core selling point. When releasing its first post-IPO earnings report this week, the company stated that its wafer-scale chips are entirely free from HBM constraints.

Chinese concept stocks rebounded, with NetEase (NTES) rising 7.74%, Chagee (CHA) gaining 6.49%, Qifu Technology (QFIN) climbing 5.33%, BOSS Zhipin (BZ) advancing 5.06%, and Pinduoduo (PDD) up 4.43%.

Corporate News

OpenAI is considering launching an IPO as early as 2027, with its listing timeline potentially lagging behind AI rival Anthropic

According to people familiar with the matter, OpenAI is considering an initial public offering (IPO) as early as 2027. Under this timeline, the ChatGPT developer's listing could come later than that of its artificial intelligence rival, Anthropic. The sources said that although both companies have confidentially filed for IPOs with the U.S. Securities and Exchange Commission, OpenAI management expects Anthropic is highly likely to go public first.

Musk cleared to acquire Mesh, expanding footprint in data center optical communications

Elon Musk has received Federal Trade Commission approval for SpaceX to acquire startup Mesh Optical Technologies. The company is dedicated to developing data center optical communication technology. Mesh is developing optical transceivers that use light signals to transmit and receive information between data centers. The company says its technology offers higher energy efficiency and lower latency compared to existing solutions. Mesh was founded by SpaceX engineers who previously worked on laser-link communications development for the Starlink internet satellite system. In February of this year, the company emerged from stealth mode and announced the completion of a $50 million funding round led by Thrive Capital.

Apple's Vision Pro business chief to defect to OpenAI

Paul Meade, Apple's core leader in charge of the Vision Pro and smart glasses business, has confirmed his departure to join OpenAI, where he will lead the research and development of next-generation AI terminal devices in its hardware department. This is another landmark event in the AI talent war, and it also confirms that OpenAI is accelerating its business expansion from a large-model developer into an integrated hardware-software full-stack AI company.

OpenAI: Launches limited preview of next-generation GPT-5.6 model series

OpenAI said it has launched a limited preview of the GPT-5.6 series. The series includes the flagship model Sol, the balanced model Terra for daily tasks, and the fast, cost-effective model Luna. Terra performs comparably to GPT-5.5 but costs two times less, while Luna delivers robust capabilities at the lowest cost. GPT-5.6 Sol features the company's most powerful security guardrails to date. It strengthens defenses against high-risk activities, sensitive network requests, and repeated abuse, following weeks of vulnerability identification and stress-testing to bolster its resilience to real-world attacks. The company plans to fully roll out GPT-5.6 Sol, Terra, and Luna in the coming weeks. As part of its ongoing communication with the U.S. government, OpenAI presented its launch plans and the model's capabilities to officials ahead of Friday's release. GPT-5.6 Sol is its most powerful model to date.

Industry & Macro News

Trump Accuses Iran of Violating Ceasefire Agreement

U.S. President Trump accused Iran of launching attacks on cargo ships crossing the Strait of Hormuz, calling the move a violation of the bilateral ceasefire agreement. Posting on social media on Friday, Trump said 'at least four' one-way attack drones targeted vessels in the waterway, with one 'solidly striking' the upper deck of a 'large and high-value' cargo ship.

Saudi Arabia May Sharply Cut August Crude Prices for Asia

A Reuters survey showed that Saudi Arabia may sharply cut its official selling prices (OSP) for crude oil sold to Asia in August to a four-month low, as the Middle East spot crude market plummeted amid rising supply. Industry sources in the survey said the August OSP for flagship Arab Light crude could be set at a premium of $1.5 to $3 per barrel over the Oman/Dubai average, which is $6.5 to $8 per barrel lower than July's OSP. Official selling prices for other Saudi crude grades are also expected to decrease by similar margins.

Goldman Sachs Recommends Allocating to Cloud Computing Giants

Goldman Sachs stated that the semiconductor sector has led the gains in the current AI bull market, with the Philadelphia Semiconductor Index surging 150% within a year. A massive influx of capital has crowded into the sector through leveraged tools like ETFs and options, resulting in crowded trading and a significant accumulation of volatility risk. Goldman strategists recommend that investors take profits in the chip sector moderately and diversify their holdings into leading cloud service providers and tech giants such as Amazon, Microsoft, and Meta.

Fed's Kashkari Expects One Rate Hike in 2026

Federal Reserve official Kashkari said that signs of widespread inflation led him to project one rate hike this year in the Fed's economic forecasts released earlier this month. Interest rates are expected to remain unchanged in 2027. In an interview with the media on Friday, Kashkari said: 'I am concerned about inflation, and it is not just about the situation in the Middle East, but rather signs of broader inflationary pressures in the economy.' The war involving Iran has driven up oil prices, and prices across numerous categories have also risen. This has exacerbated concerns among some Fed officials that inflation is broader and more persistent, potentially requiring stronger action from the central bank.