The Nasdaq Composite fell 2.6% on Thursday, its worst day since June, as concerns about AI spending hit tech stocks. U.S. futures were mixed in early Friday trading, while Treasury yields dropped and Brent crude climbed.
The Nasdaq Composite slid 2.6% in regular trading on Thursday, its worst day since June, as tech stocks sold off on concerns that the artificial intelligence trade could be faltering. The S&P 500 sank 1.2% for its worst session since July, while the Dow Jones Industrial Average closed marginally higher.
Futures were mixed in early Friday trading. Nasdaq-100 futures were up 0.25% and S&P 500 futures were flat. Dow futures were down 120 points, or 0.23%.
AI spending worries drag down chip and tech names
Worries around AI spending pulled the U.S. tech sector down 3% on the day. Nvidia dropped 4.4%, Alphabet fell 3.2%, and Advanced Micro Devices declined 8.1%.
Nvidia CEO Jensen Huang told CNBC on Thursday he thought capital within the AI buildout was becoming scarce. Ed Yardeni, president of Yardeni Research, said some depressurization wouldn't be all bad, and added: "Taking some air out of the AI bubble is a good thing."
Yields slide and Brent crude jumps
Bond yields eased on Thursday. The 10-year Treasury yield slid 18.5 basis points to 4.961% as traders bid up safe-haven assets.
Oil moved the other way. Brent jumped 4% to end the session at $113.17, its highest settle since May, after a report that the U.S. and Israel were drawing up plans for renewed attacks on Iran.
For the week, the S&P 500 is heading for a gain of less than 0.1%, the Nasdaq is down 0.5%, and the Dow is tracking for a 1.7% advance. Traders will watch the final reading of the University of Michigan's consumer sentiment report.
Source: CNBC
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