China A-share chip supply chain staged a localized rebound: Youyan Silicon rose over 10%; Changdian Technology surged, at one point up more than 8% intraday; Hua Hong Hongli, Tuojing Technology, Yandong Micro and AMEC also rallied.

Nasdaq-100 index futures extended losses to 2%, S&P 500 futures down 1%.

BofA Securities said in a research note that Moonshot AI's new Kimi K3 model has nearly three times the parameter scale of the prior K2, implying competitive advantages in AI are eroding more quickly. The bank said Alibaba's cloud business should still benefit from sustained AI training and application demand despite tight compute capacity, but Tongyi Qianwen's market narrative as an "open‑source leader" may face fresh tests. The launch also increases pressure on independent AI labs including Zhipu AI and MiniMax.