July 17(Reuters) - Canada's main stock index slipped to a

one-week low on Friday, as a selloff in U.S. semiconductor

stocks and other high-flying shares gathered pace and dented

sentiment, while gains in energy companies kept declines in

check.

The S&P/TSX Composite Index was down 0.3% at

35,234.88 points by 11:00 a.m. ET.

* Wall Street's main indexes fell as investors reassessed

the sustainability of this year's AI-driven rally. Fresh

weakness in chipmakers and a disappointing forecast from

streaming giant Netflix added to the negative sentiment.

* "The latest development is the competition from open

source models in China, which raised some competitive fears.

Supposedly there are some offerings that are rivaling the

performance of Anthropic and OpenAI," said Angelo Kourkafas,

senior global investment strategist at Edward Jones Investments.

* "So if you recall last year's DeepSeek moment, potentially

that is contributing today to some of that weakness that started

in Asia."

* Technology stocks were among the biggest decliners on the

TSX, with Celestica Inc ( CLS ), Shopify ( SHOP ), BlackBerry

down 2.1% to 3.8%.

* Gold prices rose but were set for a weekly decline as

surging energy prices stoked inflation concerns.

* The materials sector fell 1.3%, led by a sharp decline in

Trekor Metals ( TGB ). Americas Gold and Silver Corporation ( USAS )

and Ivanhoe Mines ( IVPAF ) also weighed on the index.

Five of the 10 major sectors traded lower.

* On the upside, energy shares gained 0.8% as oil prices

surged on renewed Middle East tensions and the threat of a Red

Sea closure. Brent crude futures traded around $87 per

barrel, while West Texas Intermediate futures climbed to

$81.31 a barrel.

* In company news, Lundin Mining ( LUNMF ) announced items

impacting second-quarter results late on Thursday.

* Prime Minister Mark Carney said Canada will not share with

the U.S. toll revenues from the new bridge connecting Windsor,

Ontario, and Detroit, until Canada recoups its initial

investment.