Wall Street saw a sharp sell-off in tech stocks on Friday, driven by concerns that the artificial intelligence (AI) frenzy had pushed prices too high. The S&P 500 dropped 1.8%, marking its worst day since June, while the Nasdaq composite fell 2.9%. The Dow Jones Industrial Average also declined, shedding 1.1%. Intel experienced its worst day since 1974, with shares plummeting nearly 29% after issuing a profit forecast that fell short of analysts' expectations.
Amazon's latest profit report added to investor worries, highlighting the significant spending by companies on AI investments. As tech stocks tumbled, Treasury yields sank as investors sought safer assets. Despite a rise in oil prices, the broader market sentiment remained cautious.
For the week, the S&P 500 and the Dow both posted losses, down 0.6% and 0.9% respectively, while the Nasdaq fell 2%. The Russell 2000 was the only index to gain, up 1.3% for the week. Year-to-date, the S&P 500 is still up 10.7%, the Dow 7.7%, and the Nasdaq 9.4%, with the Russell 2000 leading the way with a 13.3% gain.