Market Snapshot

📉 Banana Bits

• Moonshot’s Kimi 3 sparks another wave of AI-driven volatility on Wall Street.

• South Korea’s AI leaders continue to set the pace for global technology stocks.

• The U.S. launches new strikes on Iran after two American troops are killed.

• U.S. inflation cools while China’s economic growth loses momentum.

• Z.AI closes in on a $1 billion annual AI revenue milestone.

• The cost of importing goods from China reaches a 17-year high.

• FIFA wraps up its biggest World Cup yet with a record $9 billion windfall.

Market News

Too Much AI?

Chipmakers slid into a bear market as renewed doubts over the economics of AI spending triggered their worst week since April 2025.

A cheaper model breakthrough from China’s Moonshot revived DeepSeek-style fears that companies may not need to spend as aggressively on expensive chips, while concerns over competition, overcapacity, and stretched valuations fueled profit-taking.

Apart from that, the Nasdaq 100 fell 1.5%, and geopolitical tensions added pressure as U.S.-Iran attacks pushed oil higher.

The selloff spread beyond semiconductors, with Netflix dropping on slowing sales growth and Alcoa cutting its alumina production outlook.

Still, analysts noted that AI demand and corporate earnings remain strong, suggesting the theme may be maturing rather than collapsing. Investors are increasingly rotating into value, cyclical, and international stocks as they look for returns beyond crowded U.S. tech names.

Peel Take: AI is not dead, but the market is finally asking whether every dollar of AI spending will earn a return. That could mean more volatility for chip stocks and a broader rally for sectors that have spent the past year watching Nvidia take all the attention.

What's Ripe

Sweetgreen Inc. (SG) 13.8%

• Sweetgreen jumped 14% after U.S. federal health officials linked lettuce served at some Taco Bell locations to a multistate cyclospora outbreak.

• Investors bet the food safety concerns could drive restaurants to switch suppliers, benefiting rival produce companies.

• Peel Take: Food safety scares can quickly reshape supply chains. Even if the affected supplier isn't permanently replaced, competitors often see a short-term boost as restaurants seek alternative sources to restore consumer confidence.

SK Hynix Inc. ADR (SKHY) 1.1%

• SK Hynix rose 1.1% to $154.03, likely benefiting from the closure of South Korea's stock market.

• With no price discovery in the home market, U.S.-listed shares traded independently, supported by continued optimism around AI-driven memory chip demand.

• Peel Take: ADRs can diverge from their home-listed shares when local markets are closed. While the gain reflects resilient sentiment toward AI memory chips, investors will be watching whether SK Hynix's Seoul-listed shares catch up when trading resumes.

What's Rotten

Netflix Inc. (NFLX) 7.3%

• Netflix fell 7.3% after reporting weaker-than-expected revenue and announcing it will change how it reports viewer engagement metrics to shareholders.

• The move raised concerns about slowing growth and reduced transparency, leaving investors with fewer ways to track the streaming giant's performance.

• Peel Take: Investors don't just care about results but also want visibility. Changing the way engagement data is reported, especially alongside disappointing revenue, can create uncertainty and make it harder for the market to justify Netflix's premium valuation.

Space Exploration Technologies Corp. (SPCX) 5.4%

• Space Exploration fell 5.4% to $123.99 after the company scrubbed a planned Starship test flight due to an issue with its booster engines.

• The delay pushed back another key milestone for the next-generation rocket program, weighing on investor sentiment.

• Peel Take: Test delays are part of rocket development, but each setback raises concerns about the timeline for Starship, a program central to SpaceX's long-term ambitions in commercial space, NASA missions, and defense contracts. Investors will be watching closely for a successful rescheduled launch.

🧠 Technical Trip

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🦈 Deal Dispatch

M&A, IPOs, And Other Notable Transactions

• Moonshot plans an IPO following the launch of its latest AI model.

• SpaceX explores a Pentagon deal to provide AI computing capacity.

• Dangote raises $2.5 billion ahead of its stock market debut.

• Blue Owl-Backed Latigo Joins the IPO Queue, the growing pipeline of IPO candidates.

📊The Daily Poll

Previous Poll:

Kalshi is expanding into new prediction markets. What would you be most interested in predicting?

Sports: 20.8% // Elections: 8.4% // The economy: 33.3% // Technology & AI: 37.5%

Student Success Corner

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Banana Brain Teaser

Previous

A store reported total sales of $385 million for February of this year. If the total sales for the same month last year were $320 million, approximately what was the percent increase in sales?

Answer: 20%

Today

Last year, 26 members of a certain club traveled to England, 26 members traveled to France, and 32 members traveled to Italy. Last year, no members of the club traveled to both England and France, 6 members traveled to both England and Italy, and 11 members traveled to both France and Italy. How many members of the club traveled to at least one of these three countries last year?

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Happy Investing,
Chris, Ankit, Mitchell, Fernanda, Nick, & Patrick

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