China’s market advantage has been a huge user base, coupled with an ability to ramp up internet penetration to support an online ecosystem – from Taobao e-commerce sales to scan-to-ride bike shares.

“Early movers in the [large language model] market have already started the commercialization process, and regulatory approval for 10+ LLMs to open to the public has further cleared roadblocks to monetization,” Nomura analysts said in a Sept. 10 note, citing meetings with businesses and industry experts in Beijing in the few days prior.

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The inflation outlook for one year from now fell to its lowest level in more than 2½ years, according to a widely followed sentiment gauge released Friday.

The University of Michigan’s consumer sentiment survey showed one-year inflation expectations plunged to 3.1% in September, tied for the lowest since January 2021. Also, the five-year outlook fell to 2.7%, tied for its lowest since December 2020.

However, the overall sentiment gauge declined to 67.7, down from 69.5 in August and below the Dow Jones estimate for 69.2.

—Jeff Cox

Shares of Arm Holdings added 0.8% during midday trading Friday, crawling back slightly from its previous rally. The stock popped nearly 25% during Thursday’s trading session, when the company made its blockbuster Nasdaq debut through an initial public offering that priced shares at $51 each and valued the company at about $54.5 billion.

Some analysts are concerned about Arm’s valuation.

Needham earlier initiated coverage of British semiconductor stock with a hold rating, but said the company’s valuation may look “full” in a post-smartphone era. Quilter Cheviot earlier told CNBC that “the pricing is expensive.”

Investors are focusing on some of the risk around the company, including its exposure to China and rising competition from a rival semiconductor architecture, called RISC-V, that is backed by some of Arm’s biggest customers. Arm’s chip architecture is in 99% of the world’s smartphones.

— Pia Singh

The Dollar Index is headed toward its 9th straight weekly gain for the first time since Oct. 3, 2014. The Dollar Index marked a 12-week win streak then, which is the longest winning streak on record.

Week to date, the Dollar Index is up 0.16%.

— Hakyung Kim, Gina Francolla

The Nasdaq Composite erased earlier weekly gains on Friday, putting the tech-heavy index on pace for a 0.5% loss for the week. The concentrated Nasdaq-100 is slated for a 0.6% loss.

Some of the biggest laggards include chip equipment stocks KLA Corporation, Lam Research and Applied Materials, down at least 7% each. Adobe’s shed more than 6%, while On Semiconductor’s slumped 5.4%. Netflix is the biggest loser in the Nasdaq-100, headed for a 10.6% weekly loss.

Despite the downtrend, some stocks are poised for weekly gains. That includes Charter Communications, PayPal and Qualcomm, up more than 6% each. Tesla is the biggest winner, on pace for a 9.2% gain, followed by Moderna.

— Samantha Subin