Broadcom was the heaviest weight on the S&P 500 Friday, followed by Nvidia. The chip company that’s become the poster child of the AI boom fell 3.3 percent. Oracle fell another 4.5 percent.
The stock market also felt some pressure from the bond market, where the yield on the 10-year Treasury climbed to 4.18 percent from 4.14 percent late on Thursday. Higher yields can discourage investors from paying high prices for stocks and other investments, particularly when critics say they already look too expensive.
Friday’s drops for AI superstars continue a jagged return toward Earth after they earlier had been the main engine lifting Wall Street higher. Other stocks that used to struggle with uncertainty about the US economy’s strength and what the Federal Reserve will do with interest rates, meanwhile, have been doing better.
Notwithstanding Friday’s rise in yields, investors have been feeling more optimistic about interest rates. The Fed earlier this week cut its main interest rate for the third time this year and indicated another cut may be ahead in 2026.
All told, the S&P 500 fell 73.59 points to 6,827.41. The Dow Jones Industrial Average fell 245.96 to 48,458.05, and the Nasdaq composite fell 398.69 to 23,195.17. (AP)
