Moonshot AI spark rattles markets as Nasdaq slides on AI hype

Global markets fell after Moonshot unveiled Kimi K3, a powerful Chinese AI model that narrows the gap with OpenAI and Anthropic, fueling fears that open‑source AI could disrupt US incumbents and slow the AI spending rally. The Nasdaq dropped about 1.5% on Friday (S&P 500 -0.7%; Dow -60 points). Asia’s markets also fell (Taiwan down >6%, Japan about -4%). Micron slid roughly 30% from late June highs, while Alphabet and Nvidia edged lower. Oil rose as concerns over inflation persist; US gas neared $4 per gallon and June CPI showed inflation at 3.5% year over year. Investors are weighing how impactful Kimi K3 will be and whether AI hype will sustain chipmakers’ growth.