The Nasdaq Composite faced renewed selling pressure on Friday, dipping sharply in early trading before staging a partial recovery.
The market turbulence was triggered by the release of Kimi K3, a new high-performance artificial intelligence model from Beijing-based developer Moonshot AI.
The launch has intensified investor scrutiny of the competitive landscape, raising questions about the sustainability of US dominance in the AI sector and the valuation premiums currently applied to American tech giants.
While the broader index managed to claw back some losses, the selling pressure was not evenly distributed.
SpaceX, the private aerospace and defense manufacturer, saw its valuation remain under pressure, reflecting broader risk-off sentiment among growth-oriented assets.
The episode underscores the fragility of the current market regime, where sentiment is heavily tied to the narrative of unassailable US technological leadership.