Stocks fall again Friday with another big decline for tech stocks; Nasdaq sheds 1.5%
Stocks fell Friday as another bout of heavy selling in technology names put pressure on Wall Street.
The Nasdaq Composite dropped 1.5%, while the S&P 500 shed 1.1%. The Dow Jones Industrial Average lost 479 points, or 1%.
Key technology stocks continued to face pressure Friday. Nvidia and Advanced Micro Devices each slipped 3% in the premarket, extending their losses from the previous session. Palantir Technologies and Tesla each declined 4% in premarket trading following losses of more than 6% by both in the prior session. The Technology Select Sector SPDR Fund (XLK) was down almost 2% Friday, following a 2% loss on Thursday.
Bitcoin saw meaningful losses Friday as well, falling below $95,000, in a sign of the risk-off mood on Wall Street, especially by tech investors.
Major U.S. indexes on Thursday posted their worst one-day performance since Oct. 10. The Dow Jones Industrial Average lost about 800 points, taking back gains seen in Wednesday’s session when it crossed the 48,000 level. The Nasdaq Composite dropped more than 2%, as technology giants came away battered. Those losses have now put the tech-heavy Nasdaq on pace to snap its seven-week win streak with a week-to-date fall of 0.6%. The S&P 500 is up about 0.1% on the week, and the 30-stock Dow is higher by 1%.
Concerns about the artificial intelligence trade have emerged more seriously this week, with the recent wipeout in once-hot cloud stock Oracle further spooking investors about elevated tech valuations, a massive surge in debt financing and soaring AI capex plans. To be sure, Oracle’s growth is uniquely more reliant on its cloud deal with OpenAI and the company has far less cash compared to hyperscalers.
Source : Cnbc.com
