Nasdaq Suffers Worst Week Since June Amid Artificial Intelligence Anxieties
Technology stocks in global markets declined due to artificial intelligence concerns, rising oil prices, and interest rate expectations.
Tech stocks on Wall Street wrapped up the week under pressure, driven by concerns over artificial intelligence trading, surging oil prices, and Federal Reserve interest rate hike expectations.
General Market Conditions
While Wall Street closed Friday in the red, artificial intelligence concerns that suppressed risk appetite left their mark on recent sessions, causing tech-heavy indices to retreat.
Weekly Losses in Indices
The S&P 500 dropped 1.1% to close at 7,659.11 points, the Dow Jones Industrial Average fell 0.6% to 52,001.52 points, and the Nasdaq declined 2.2% to finish at 26,140.03 points.
On a weekly basis, the S&P 500 retreated 2% and the Nasdaq dropped 4.5%, while the Dow Jones gained 0.7%.
Central Bank and Interest Rate Expectations
While Federal Reserve Chairman Kevin Warsh's failure to signal whether there will be monetary policy tightening this month influenced market expectations, investors focused on quarterly earnings reports in the coming weeks.
Sharp Declines Among Chipmakers
Jones Trading Chief Market Strategist Michael O'Rourke pointed to concerns that 2026 could mark the peak in earnings growth.
Driven by worries over Chinese competition and artificial intelligence infrastructure debt, shares of Micron, Samsung Electronics, and SK Hynix suffered weekly losses of 14.6%, 17.8%, and 24.3% respectively.