The S&P 500 had its worst session since July as worries about artificial intelligence spending hit tech stocks. U.S. futures were mixed in early Friday trading. Falling Treasury yields and a jump in Brent crude added to the day's moves.
The S&P 500 sank 1.2% in regular trading, its worst session since July. Tech stocks sold off on concerns that the AI trade could be faltering, at least in the near term.
The Nasdaq Composite slid 2.6%, its worst day since June. The Dow Jones Industrial Average bucked the trend and closed marginally higher.
Futures were mixed in early Friday trading. S&P 500 futures were flat, Dow futures were down 120 points, or 0.23%, and Nasdaq-100 futures were up 0.25%.
AI spending worries drag chipmakers
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 in the AI trade wouldn't be all bad. According to CNBC, Yardeni said: "Taking some air out of the AI bubble is a good thing."
Yields slide and oil jumps
The 10-year Treasury yield slid 18.5 basis points to 4.961% on Thursday as traders bid up safe-haven assets.
Meanwhile, Brent crude jumped 4% to end the session at $113.17, the highest settle since May. The move followed a report that the U.S. and Israel were drawing up plans for renewed attacks on Iran.
On the week, the S&P 500 is heading for a gain of less than 0.1%, while the Nasdaq is down 0.5%. Traders will now watch the final reading of the University of Michigan's consumer sentiment report.
Source: CNBC
Trading involves risk.