What’s News in Markets: AI Whiplash, SpaceX’s Historic IPO, Knicks Fever

This week, markets whipsawed on geopolitics, AI jitters, and the biggest IPO in history. The Dow suffered its worst single day of the year on Wednesday, then added 930 points the very next day. By Friday, major indexes had eked out small gains, but the real story was the chaos beneath the surface—chip stocks swinging wildly, a SpaceX debut that dwarfed every IPO before it, and even a New York Knicks playoff run moving a stock price.

Geopolitics and the One-Day Reversal

The week's volatility began with escalating conflict in the Middle East. On Wednesday, fears that higher oil prices could reignite inflation sent the Dow plunging in its worst session of 2025. But sentiment flipped within 24 hours. On Thursday, President Trump announced he was canceling planned strikes on Iran as negotiators pursued a broader agreement. Stocks soared, and the Dow surged nearly a thousand points.

The whiplash left investors uncertain whether the ceasefire would hold, but the immediate takeaway was a reminder of how fragile the current market calm can be. The Nasdaq, in particular, has been swinging more than 2% a day on average over the past week—more than double its typical pace. The episode also underscored the risk of a top-heavy market, where a handful of sectors drive the entire index.

AI Chip Stocks Take a Breather