US stock markets showed mixed results on Friday, with the S&P 500 down 0.1% and the Nasdaq composite falling 0.7%. The Dow Jones Industrial Average bucked the trend, rising 0.4%. The tech sector, particularly AI-related stocks, weighed heavily on the market, with companies like Micron Technology, Advanced Micro Devices, Broadcom, and Intel all posting losses. Investors are growing concerned about the ability of these companies to sustain their heavy investments in AI technology amid rising bond yields.
Netflix's stock dropped 1.9% following news of a leadership change at the company. Chief Content Officer Bela Bajaria will be replaced by Peter Rice, just days after Netflix announced plans to lay off about 6% of its workforce. Gains in the financial sector, including JPMorgan, Citigroup, and Wells Fargo, helped offset some of the market's losses.
European and Asian markets saw gains, while Treasury yields remained steady at 5.10% for the 10-year note. Despite recent inflation data showing higher-than-expected increases, yields have eased slightly. The Federal Reserve's key interest rate stands at about 3.9%, with traders now pricing in a 76.1% chance of another rate hike by December.
In other news, Tesla's shares rose 0.6% after unveiling a new model of its Roadster sports car. Alcoa surged 8.8% after reporting strong quarterly results. Oil prices remained elevated, with Brent crude up 0.1% at $105.85 per barrel, as global supply concerns persisted due to the ongoing Iran war.