Chips lead Wall Street lower as the IMF cautions Threadneedle Street

The chip slump deepens

The Nasdaq fell again on Friday as the selloff in semiconductor shares extended into another session, according to the Wall Street Journal. The pressure has been building through the week, and the latest leg lower left the technology-heavy index once more in retreat.

Part of the fresh weight came from China. The Journal reported that Moonshot AI, a Chinese developer, added to the anxiety among chip investors, feeding worries that cheaper or home-grown alternatives could erode demand assumptions that had underpinned the sector's long run. The theme of Chinese competition was echoed elsewhere in the day's coverage.

The crown at the top of Wall Street changed hands, narrowly. The Journal reported that Nvidia retained its position as the market's most valuable company, but only just, after a challenge from Apple. The contest is a measure of how quickly sentiment around the chipmakers has shifted from unquestioned leadership to something more contested.

Netflix supplied a separate disappointment. This is Money reported that its shares tumbled after an earnings forecast fell short of Wall Street's expectations. It was a reminder that even away from the semiconductor names, guidance rather than past results set the tone for how a company's shares traded on the day.

Rates, deficits and the Bank of England

The International Monetary Fund weighed in on British monetary policy. City A.M. reported that the Fund warned the Bank of England against cutting interest rates, a note of caution aimed squarely at Threadneedle Street as it weighs the path ahead.

The politics around the Bank drew attention too. The Guardian examined how Andy Burnham's team could reshape the institution, setting out the ideas circulating about its future direction. The piece sat alongside the IMF's intervention as a marker of how much scrutiny the central bank is under from more than one quarter.

The household backdrop remained tight. This is Money reported that families face a fresh pay squeeze as salaries fail to keep pace with inflation, the kind of real-terms erosion that shapes the environment in which any rate decision lands.

In the bond market, the Wall Street Journal reported that Treasury yields slipped amid solid economic indicators and tension in the Middle East. A separate Journal feature looked at how sky-high deficits threaten the bond market over the longer run, a structural concern running underneath the day-to-day moves in yields.

Deals, listings and a rule change

Britain's mid-cap market stayed in the sights of overseas buyers. This is Money reported that four UK firms were targeted in a fresh round of bids worth some £10bn, as foreign predators scoured the London market for what they regarded as bargains. It was another instalment in a run of approaches for listed British companies.

Elsewhere, the pipeline of new listings drew notice. The South China Morning Post reported that Shein passed its hearing for a Hong Kong listing, with its valuation halved to below 50bn dollars, according to sources. The Post also reported that the Chinese memory-chip maker CXMT was oversubscribed 212 times in a large Shanghai flotation, while the Hong Kong exchange returned an IPO application sponsored by a top Chinese investment bank.

On the corporate front in the United States, the Journal reported that Fifth Third's profit was boosted by its acquisition of Comerica, an example of a completed deal feeding through to earnings. The Guardian, meanwhile, reported on a multistate effort to stop Paramount's 111bn dollar merger, an action headed to court amid claims that laws were broken.

Regulation supplied a final thread. The Journal reported that the SEC is expected to change its quarterly earnings rule despite public backlash, a shift that would alter how often listed American companies are required to report. The same publication asked why most investors did not beat the market during a strong quarter, a question about performance that recurs whenever indices run hard.