A selloff in technology companies sent stocks lower on Wall Street on Friday, capping the market’s worst week since late June.
The S&P 500 fell 1.1%. Its decline of about 2% for the week erased its gains from last week, when it set a record level.
The Nasdaq Composite Index, heavily weighted in technology stocks, fell 2.1% and posted its first weekly loss in five weeks and its worst since June.
The Dow Jones Industrial Average held up better, closing down 0.3%.
Just over half of the S&P 500 stocks fell, but all but seven of the index’s 75 technology sector stocks closed lower. Among the biggest declines were chipmakers, reflecting growing concerns about how long the frenzy over AI development will last.
Micron Technology fell 5.6%, Advanced Micro Devices fell 6%, Broadcom fell 4.5% and Intel dropped 5.8%.
Other tech companies that finished in the red included Meta, down 3.7%, and Google parent Alphabet, down 2.5%.
It’s been a busy week for chipmakers and other big tech stocks at the heart of the market. artificial intelligence industry. Investors now fear that companies, which rely on debt markets to finance an investment spree in their technology, will not be able to continue borrowing and spending as much with falling returns. bond markets around the world recently reached their highest levels in years.
AP AUDIO: US markets weighed down by prolonged sell-off in the technology sector
Wall Street had its worst week since June as big tech companies continue to fall.
Netflix stock fell 2.9% a day after the company announced that chief content officer Bela Bajaria would be replaced by Peter Rice. The news comes a few days later Netflix said it plans to lay off about 6% of its workforce, or nearly 1,000 positions.
Energy stocks held up better than most. Exxon rose 2.5% and Chevron rose 2.6%.
European and Asian markets closed higher.
In the bond market, Treasury yields remained relatively stable. The 10-year Treasury yield fell to 5.09% from 5.10% Thursday evening. It had exceeded 5.30% at the start of the month and reached its highest level since 2002 due to concerns over high inflationsignals of a strong U.S. economy and other factors.
Yields are falling despite reports this week showing that inflation consumer And wholesale level in the United States, the increase was stronger than economists predicted.
These reports could persuade the Federal Reserve’s inflation fighters to raise their key interest rate before the end of this year. The central bank increased its key rate by a quarter of a point to reach around 3.9% in September, its first increase in three years.
Wall Street traders expect the Fed to keep its short-term rate unchanged at its policy meeting this month, but the odds of a rate hike at the December meeting jumped to 74.3% from 50.2% a month ago, according to CME Group data.
Friday, Kevin Warsh, Chairman of the Federal Reserve gave no new signals on possible changes to the Fed’s interest rate policy while attending a meeting of financial leaders in Bangkok.
Elsewhere in the market, Tesla shares fell 2.1% after the electric vehicle maker unveiled a new model of its Roadster sports car who can propel himself through the air.
Alcoa rose 2.5% and The Travelers Cos. by 1.5% after companies published quarterly results that beat Wall Street forecasts.
Expectations are high for earnings growth from all kinds of companies during this reporting season, which began in earnest this week. This is what has allowed US stocks to set records despite high inflation and the many other concerns weighing on Wall Street.
Overall, the S&P 500 fell 84.62 points to 7,659.44. The Dow lost 175.28 points to 52,002.41 and the Nasdaq lost 572.99 points to close at 26,140.03.
In energy markets, oil prices remained high as global oil supplies continue to be under pressure without a deal between the United States and Iran to end the crisis. Iranian War.
Brent crude, the international standard, jumped 3.7% to $109.86 a barrel. This is up from $72 a barrel in late February, before the war began. Brent soared by triple digits last month, the first time since July.
The national gasoline average was $4.33 per gallon Friday, according to AAA. While that’s lower than the $4.37 per gallon average last month, it’s significantly higher than the $3.06 per gallon a year ago.
Oil remains well supported due to uncertainties surrounding the situation in the Middle East and concerns over oil flows in the Strait of Hormuz The market has “priced in a significant risk premium,” ING commodity strategists Warren Patterson and Ewa Manthey wrote in a commentary Friday.
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