Deep Seek 2: China Repriced The Tape 🧨

Welcome to LazyListen. This is The Daily Rip for today. I.

S. I. labs, chipmakers, and data-center builders.

The S&P 500 slipped below 3,750, while the Nasdaq dropped one and a half percent. Energy was the only sector to close in the green, boosted by a sharp four and a half percent jump in crude oil prices. Meanwhile, semiconductors took a hit, with the Philadelphia Semiconductor Index officially entering bear market territory.

The catalyst? I. , named Kimi K3, shook up the market by delivering frontier-level performance at roughly forty percent less cost than Anthropic’s comparable model.

I. S. competitors.

I. model rankings, including brand and marketing, data analytics, consumer products, simulations, and content creation tools. It ranked second only in gaming, behind Anthropic’s Fable 5.

I. and chip names lower. TSMC and Meta both fell nearly three percent, Nvidia and Alphabet dropped about two and a quarter percent, Microsoft slid nearly two percent, and Amazon, AMD, and Broadcom each lost around one percent.

I. systems, especially as Kimi K3 goes open-weight later this month, allowing companies to customize and run it themselves. Meta’s decline came despite reports that Anthropic is negotiating a 10 billion dollars compute deal with Facebook’s parent company.

I. model is behind schedule. I.

For chipmakers, the implications are mixed. I. models could boost demand for inference chips, they also reduce the need for massive spending on training hardware.

Retail investors showed a split reaction: bullish sentiment was high for TSMC and Nvidia, but Broadcom leaned bearish and AMD was nearly evenly divided. I. labs, most remained bullish except Microsoft, which saw a bearish tilt.

In other news, the fast-casual salad chain Sweetgreen rallied fifteen percent Friday after regulators traced a Cyclospora outbreak to iceberg lettuce served at Taco Bell, part of Yum Brands. Sweetgreen’s shares had fallen sharply earlier in the week amid fears of produce contamination but rebounded as it became clear their supply chain was not implicated. Taco Bell removed the suspect lettuce nationwide, and the outbreak, which spans five states with over 1,600 cases and 94 hospitalizations, is linked to a single Mexican supplier preparing a recall.

Despite Sweetgreen’s relief rally, traders remain cautious. Messaging volume around Sweetgreen was high but leaned slightly bearish, as investors shifted focus to the company’s sales and guidance. Yum Brands also saw its shares drop two percent on Friday and nine percent for the week, with concerns that negative headlines could hurt Taco Bell traffic even after the lettuce issue is resolved.

On the macro front, Trump Media, the company behind Truth Social, announced a new revenue stream: selling banks and algorithmic traders faster access to former President Donald Trump’s market-moving posts. The Truth API launches in August, with customers already signed up at a steep price of 100000 dollars per month. This paywall for presidential posts raises questions about insider trading risks and conflicts of interest, given Trump’s roughly forty one percent ownership stake in the company while serving as president.

Trump Media’s stock edged up slightly Friday, extending its weekly gain to over thirteen percent, but the company still reported a 406 million dollars loss last quarter and carries nearly 1 billion dollars in debt. The service covers posts from ten accounts and could generate significant revenue, but the political and regulatory risks loom large. Looking at quick movers Friday, energy-related names like Venture Global surged nearly nine percent after Middle East shipping risks boosted LNG exporters.

Travelers jumped nine percent following strong core income and improved underwriting results. In biotech, Replimune gained over seven percent after an FDA review revived hopes for its RP1 cancer therapy approval. I.

spending concerns and earnings misses. I. spending doubts.

S. procedure growth slowed despite an earnings beat. I.

model. Also, monitor energy stocks amid ongoing geopolitical tensions affecting supply chains. Finally, watch consumer sentiment around food and retail stocks as the fallout from the lettuce outbreak continues to play out.

In summary, Friday’s selloff highlights how quickly market narratives can shift when innovation disrupts assumptions about leadership and pricing power. I. I.

S. tech giants and chipmakers alike. Meanwhile, supply chain issues and political developments add layers of complexity heading into next week.

Thanks for listening. Catch you next time on LazyListen.