S&P 500 retreats from record Friday, closes down for week as investors rush out of AI trade
U.S. equities pulled back on Friday as investors continued to exit technology stocks and move into value areas of the market.
The S&P 500 fell 1.1%, and the Nasdaq Composite declined 1.7%. The Dow Jones Industrial Average was last trading down 245 points, or 0.5%, after scoring a new intraday all-time high earlier in the session. The Russell 2000 index slid 1.4% but had also hit a fresh all-time high during the trading day.
The broad market index and tech-heavy Nasdaq were bogged down by an 11% drop in Broadcom, which some analysts think is because of margin compression worries. That’s even after the company beat fourth-quarter expectations and gave a strong forecast for the current quarter, saying artificial intelligence chip sales look to double.
As the AI trade faced more pressure, with names like AMD, Palantir Technologies and Micron seeing some losses alongside Broadcom, stocks in other areas of the market such as financials, health care and industrials received a bit of a boost. In those sectors, Visa and Mastercard as well as UnitedHealth Group and GE Aerospace were winners.
Source : Cnbc.com
