At the close of 25/06/2026, the Tadawul All Shares Index(TASI.SA) dropped by 0.67%, closing at 10933.23 points; the Parallel Market Capped Index (NomuC)(NOMUC.SA) dropped by 0.2%, closing at 23008.72 points. 

The NASDAQ(IXIC.US) posted its fifth consecutive losing session Friday as investors rotated out of key technology stocks and into more defensive areas of the market.

The tech-heavy index dropped 0.24% to close at 25,297.62, while the S&P 500 index(SPX.US) ticked down 0.05% to 7,354.02. The Dow Jones Industrial Average(DJI.US) shed 44.51 points, or 0.09%, to end at 51,876.11.

The S&P 500 slid nearly 2% on the week, while the Nasdaq fell 4.6% in the period. The Dow outperformed, rising 0.6% week to date.

Chip stocks were weaker after a New York Times report that OpenAI is considering delaying its IPO to next year because of SpaceX(SPCX.US)’s poor performance following its debut and overall volatility in AI-related shares.

The report raised concerns about “sustainability of their infrastructure spending given the delay in funding from the capital markets,” wrote JPMorgan traders in a note.

The OpenAI IPO delay “could slow the pace of infrastructure spending,” said Adam Crisafulli of Vital Knowledge.

Shares of Micron Technology, Inc.(MU.US) declined more than 6%, while Advanced Micro Devices, Inc.(AMD.US) lost 2%. Shares of Intel Corporation(INTC.US) shed more than 3%.

The sell-off was particularly severe in Asia. SoftBank Group, which is a key backer of OpenAI, led losses across the region on Friday, plunging more than 12%. South Korean equities finished sharply lower, with the Kospi declining 5.81% to 8,411.21 and the Kosdaq shedding 4.10% to 851.37, as the broad-based technology sell-off swept across the region.

Ross Mayfield, investment strategist at Baird, believes that the rotation could last “well into July” because of, in part, “how extended” some of the chip stocks have gotten. That said, he’s still bullish on the group in the long term.

“I still over the next 12 months would bet on chip stocks and AI infrastructure stocks outperforming because the demand is just so insatiable,” he said. While there is “a little bit of catch up to be played by some of the laggards,” Mayfield continued, “I don’t necessarily think that this is a full-on rotation where AI infrastructure names are going to be laggards for the next 12 months or anything like that.”

The S&P 500 information technology sector dropped 1% on the day as investors moved out of chip stocks and continued to buy up shares of healthcare names after the group was a standout in the prior trading day. Shares of Eli Lilly and Company(LLY.US) were up 7%, while Johnson & Johnson(JNJ.US) gained almost 4%. AbbVie, Inc.(ABBV.US) shares advanced more than 4%.

Beyond healthcare, the consumer staples, financials and utilities sectors were also winners of the day. Consumer staples advanced nearly 1%, while financials and utilities gained 0.8% and 0.4%, respectively.

Better-than-expected consumer sentiment data, along with an improved inflation outlook, lent support to the market Friday. That’s even as Minneapolis Federal Reserve President Neel Kashkari said he now expects that one interest rate hike will be necessary this year as a result of rising inflation linked to the conflict in the Middle East.

Oil prices settled lower Friday even after President Donald Trump said that Iran violated the ceasefire agreement with the U.S.

US Jets Strike Iranian Military Targets

The US military executed targeted air strikes against Iranian military surveillance, communication, and drone storage facilities on June 27, 2026. According to US Central Command, the action responded to an Iranian drone attack that destroyed the Panama-flagged crude oil tanker "M/T Kiku" near the Strait of Hormuz. President Donald Trump stated the strikes penalize ceasefire violations and warned of total military intervention.

Saudi Arabia Updates Anti-Money Laundering Rules

Saudi Arabia implemented updated executive regulations for its Anti-Money Laundering Law on June 26, 2026. The new rules require financial institutions to document and submit periodic written risk assessments to supervisory authorities. Additionally, travelers entering or leaving the Kingdom must disclose cash, gold, or jewelry valued at or exceeding SAR 40,000.

KSA Stocks

Jabal Omar Sells 400 Units to Lower Debt

Jabal Omar Development Co.(4250.SA) plans to sell 400 hotel residential units this year to reduce debt after the project was included in geographic areas where non-Saudis may own real estate. The company will also use off-plan sales for its seventh phase to minimize financing costs. The initiative remains subject to regulatory approvals.

Dar Al Balad Signs SAR 20M Loan

Dar AlBalad for Business Solutions Co.(7205.SA) signed a SAR 20 million Shariah-compliant credit facilities agreement with Saudi National Bank on June 25, 2026. The facilities, which expire on April 30, 2027, are secured by promissory notes and project proceeds. The funds will back working capital, bid bonds, and performance bonds.

SAL Logistics Boosts Yearly Financial Outlook

SAL Saudi Logistics Services Co.(4263.SA) signed a strategic agreement on June 25, 2026, to provide cargo ground handling and ramp services for Singapore Airlines at King Khalid International Airport in Riyadh. The yearly renewable agreement has no fixed value but is expected to positively impact financial results.

SAR 75.6M Subscription Cuts Al Yamamah Stake

Al Yamamah Steel Industries Co.(1304.SA) will subscribe to 6.3 million shares in its subsidiary's capital increase for SAR 75.6 million to fund a plant expansion. The transaction will be funded from internal resources. Consequently, the parent company's stake in the subsidiary will fall from 72.5% to 51%, pending regulatory approvals.

Saudi Fisheries Delays 51% Stake Sale

Saudi Fisheries Co.(6050.SA) and its counterparty agreed to extend their lease transfer and licensing agreement for the sale of a 51% stake in Al-Haridah Aquaculture Company. The extension is effective from June 26, 2026, until August 31, 2026. No changes to associated costs were reported.

USA Stocks

Investors Grow Sensitive to AI Valuations

Investors are increasingly sensitive to stretched valuations of artificial intelligence stocks and climbing infrastructure costs. While Micron Technology, Inc.(MU.US) rose over 4% this week following strong earnings, the gains failed to halt a broader semiconductor decline. Goldman Sachs strategist Chris Hussey noted that despite favorable macro indicators like falling oil prices and yields, steep drops in large-cap tech overwhelmed gains in the remaining 490 index components.

Western Digital Plunges 13% on Storage Selloff

ON Semiconductor Corporation(ON.US) plummeted 23.63% after announcing a $7 billion all-stock acquisition of Synaptics Incorporated(SYNA.US). Moderna(MRNA.US) soared 12.89% on pipeline updates, while storage stocks dropped sharply, led by Western Digital Corporation(WDC.US) plunging 13.20%, Seagate Technology Holdings PLC(STX.US) falling 12.24%, Sandisk Corporation(SNDK.US) down 10.46%, and Micron Technology, Inc.(MU.US) losing 6.70%. Apple Inc.(AAPL.US) rose 3.10% after raising iPad and MacBook prices due to soaring component costs. Among mega-caps, Microsoft Corporation(MSFT.US) surged 5.71%, Amazon.com, Inc.(AMZN.US) rose 2.50%, Meta Platforms(META.US) gained 1.40%, and Tesla Motors, Inc.(TSLA.US) added 1.22%, while NVIDIA Corporation(NVDA.US) fell 1.64% and Alphabet Inc. Class A(GOOGL.US) dropped 1.84%.