Fabio Bassi, JP Morgan head of cross-asset strategy, said that as long as AI remains the market’s dominant theme, European equities are likely to continue lagging other major markets. He flagged structural headwinds — higher policy rates, elevated energy costs and low productivity — but noted a medium-term support case from Europe’s large export sector if global growth stays resilient.

U.S. crude futures settled at $82.49/bbl, up $3.54, or 4.48%.

Markets are increasingly doubting prior certainties, a dynamic amplifying the current equity decline. The S&P 500 fell 1.6% this week, the Nasdaq Composite dropped 2.9% and the Nasdaq-100 lost 2.7%, putting July on track to be the worst in over 20 years. The Philadelphia Semiconductor Index is down about 20% from its June 22 peak and entered bear-market territory on Friday. Asian pain is visible: KOSPI is off more than 25% and Japan’s Nikkei 225 plunged 4% on Friday, entering a technical correction. The sell-off lacks a single clear catalyst; cited drivers include concerns that chip-sector gains in 1H ran too far, large tech borrowing to fund capex plans, and persistent macro uncertainty under new Fed policy. BTIG chief market technical analyst Jonathan Krinsky warned a summer-style correction similar to 2024 could push the S&P 500 below its 200-day moving average at 6,983 points. If that occurs, semiconductors would likely weaken further and recent breadth trades and the Magnificent Seven could stall and turn down. Market action appears to be moving in that direction despite the absence of an obviously dangerous headline.