US markets ended Friday on a sour note as a broad sell-off in technology stocks dragged down major indices. The S&P 500 fell 1.1%, wiping out its gains from the previous week when it hit an all-time high. The Nasdaq composite, heavily weighted with tech stocks, sank 2.1%, marking its first weekly loss in five weeks. The Dow Jones Industrial Average fared slightly better, closing just 0.3% lower.
The tech sector was hit hardest, with chipmakers leading the decline. Micron Technology dropped 5.6%, Advanced Micro Devices fell 6%, Broadcom lost 4.5%, and Intel gave up 5.8%. Investors are growing concerned about the sustainability of the AI buildout and whether these companies can continue borrowing and spending heavily amid rising bond yields. Other tech giants like Meta and Alphabet also finished in the red, down 3.7% and 2.5% respectively.
Energy stocks bucked the trend, with Exxon rising 2.5% and Chevron adding 2.6%. Meanwhile, Netflix’s stock fell 2.9% after announcing a change in its Chief Content Officer and plans to lay off about 6% of its workforce. In the bond market, the yield on the 10-year Treasury slipped to 5.09% from 5.10%, despite reports of rising inflation. The Federal Reserve’s next move remains uncertain, with traders expecting a 74.3% chance of a rate hike in December.
Oil prices remained elevated due to ongoing supply pressures, with Brent crude jumping 3.7% to settle at $109.86 per barrel. The national average for gasoline stood at $4.33 a gallon, sharply higher than a year ago. The market continues to price in a significant risk premium amid uncertainties in the Middle East.