US stock indexes opened the day on mixed ground as tech stocks dragged down the broader market. The S&P 500 dipped 0.1%, while the Dow Jones Industrial Average climbed 0.4%. The Nasdaq composite fell 0.7%, facing its first weekly loss in five weeks due to weakness in AI-related stocks.
Technology companies led the declines, with Micron Technology dropping 3.3%, Advanced Micro Devices down 3.1%, Broadcom off 1.8%, and Intel losing 2.9%. Investors are concerned that rising bond yields may limit these companies' ability to borrow and invest heavily in AI technologies. Netflix also fell 1.9% after announcing a change in its Chief Content Officer and plans to lay off about 6% of its workforce.
Gains in big banks helped offset some of the market's losses. JPMorgan rose 2.3%, Citigroup gained 2.7%, and Wells Fargo was up 1.8%. European and Asian markets showed broader gains, while Treasury yields mostly eased, with the 10-year yield holding steady at 5.10%. Despite recent inflation reports, yields have slightly decreased.
The Federal Reserve remains a key focus, with traders expecting no rate change this month but a 76.1% chance of a hike in December. Oil prices stayed elevated due to ongoing supply concerns, with Brent crude up 0.1% at $105.85 per barrel. Tesla shares rose 0.6% after unveiling a new Roadster model, and Alcoa jumped 8.8% after strong quarterly results.