NEW YORK (AP) – The sell-out for winners of the Artificial intelligence The boom intensified on Friday, sending stock markets worldwide falling. Meanwhile, oil prices continued to rise the war with Iran.
The S&P 500 fell 1%, ending its first losing week in the last three weeks and just the third since late March. It had risen just a few days earlier within 0.5% of its all-time high.
The Dow Jones Industrial Average fell 406 points, or 0.8%, and the Nasdaq Composite fell 1.4%.
Chip stocks and other AI darlings were once again the focus of shaky trading. That was them under pressure for weeks out of concern that their prices are skyrocketing and that the insatiable demand for computer memory and processors may become unsustainable if AI ends up yielding less profit and productivity than promised.
AP AUDIO: Selloff for AI stars worsens as oil prices continue to rise
AI is sinking the markets again.
Nvidia was the biggest weight in the S&P 500, down 2.2%. Its recent losses forced the company to briefly give up its No. 1 ranking as Wall Street’s most valuable company on Friday, but ended the day back above Apple.
Applied Materials fell 5.6%, reducing its annual gain to 106%. Micron Technology fluctuated between a loss of 5.8% and a gain of 3.2% before falling 0.5%.
Earlier this morning there was a global tech sell-off. Indices fell 6.5% in Taipei, 4% in Tokyo and 3% in Shanghai, while stocks such as Taiwan Semiconductor Manufacturing Co. fell 7.3%.
The South Korean stock market was closed for a holiday, providing a recovery, albeit temporary. It has been at the center of the AI woes because it is dominated by two major tech companies: Samsung Electronics and SK Hynix. Last week alone, Seoul’s Kospi stock index recorded one day where it rose 6.2% and two others where it fell 6.4% and 8.9%, respectively.
News from a powerful one Chinese AI model through start Moonshot, Kimi K3further shook the markets. Similar to back then in China DeepSeek After the company announced its AI model in early 2025, another low-cost competitor to major Western AI models like ChatGPT and OpenAI could potentially hurt demand for computer chips and other components.
European stock indices, which place less emphasis on AI and technology, saw milder moves.
Pressure on Wall Street was added to by slumps in several stocks following recent earnings reports. Companies are under pressure to deliver big growth in the spring to justify the big moves their stock prices have already made.
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Netflix fell 7.3% after its IPO Sales for the last quarter fell just short of analysts’ expectations, although profit came in higher than expected. The forecasts for future sales and profits in the summer also fell short of expectations.
Intuitive Surgical, a maker of robotic surgical systems, fell 14.1% despite beating expectations for its latest quarter. Analysts pointed to concerns about a slowdown in procedure growth Expiration of expanded tax credits This helped reduce the cost of health insurance for many Affordable Care Act participants.
Elon Musk’s SpaceX fell 5.4%, reaching its lowest level since then Its shares were traded on Nasdaq a little over a month ago. The owner of the xAI company was swept up in the swings of AI stocks, and that was how it had to be abort a test flight of its mega Starship rocket Thursday, about a second after launch.
Overall, the S&P 500 fell 76.08 points to 7,457.69. The Dow Jones Industrial Average fell 406.55 to 52,146.42 and the Nasdaq Composite fell 361.70 to 25,520.24.
Further rising oil prices also put the stock market under pressure.
The price of a barrel of Brent crude, the international standard, rose 4.6% to $88.10, from around $76 a week ago.
The United States expanded its airstrike campaign They attacked Iran early Friday, hitting more bridges and toppling a tower at a key Iranian port. This raised further concerns about the operational viability of oil tankers the Strait of Hormuz Transporting crude oil from the Persian Gulf to customers worldwide.
High oil prices have pushed up Treasury yields in the bond market, threatening to slow the economy and undercut the prices of stocks and all sorts of other assets. Higher yields have already pushed up the average 30-year mortgage rate Highest in almost a year.
However, longer-term Treasury yields fell on Friday. The yield on the 10-year Treasury note fell to 4.55% from 4.57% late Thursday.
U.S. consumer sentiment is improving more than economists expected while expectations about upcoming inflation have eased, according to a report. That’s important for the Federal Reserve, which is considering raising interest rates to curb inflation.
Keeping inflation expectations anchored could prevent a vicious cycle in which people take actions in anticipation of higher inflation that only make it worse.
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AP business reporters Matt Ott and Elaine Kurtenbach contributed to this report.
https://apnews.com/article/stocks-markets-ai-iran-trump-rates-65449e9565fba441a617f9517e097f5a
