Wall Street tumbled Friday as rising oil prices, surging bond yields and renewed inflation fears triggered a broad selloff across global markets, with technology stocks leading the decline after months of AI-driven gains. The S&P 500 fell roughly 1% after hitting a record high a day earlier, while the Nasdaq Composite dropped more than 1%. The Dow Jones Industrial Average also slid sharply, losing more than 400 points in morning trading.
AI stocks reverse sharply after huge rally
Technology shares suffered some of the heaviest losses Friday. NVIDIA dropped more than 4%, making it one of the biggest drags on the S&P 500 despite still being up more than 26% this year.
Applied Materials also fell even after posting stronger-than-expected quarterly profit growth fueled by global AI infrastructure demand.
Analysts said the pullback may reflect growing concerns that AI-related stocks had become overheated after months of massive gains.
“To us, it looks like markets have pushed into overbought territory,” Brian Jacobsen, chief economic strategist at Annex Wealth Management, told AP.
He added: “The path is unlikely to be smooth. Periods like this call for discipline more than hope.”
Jonathan Krinsky, chief market technician at BTIG, also warned investors about rising volatility in tech-heavy markets.
“If nothing else this should be a ‘shot across the bow’ for how volatility works both ways,” Krinsky told the publication.
Oil surge and Iran war factor
The latest market turmoil comes as the ongoing conflict involving Iran continues disrupting global energy markets. Concerns have intensified over the effective closure of the Strait of Hormuz, a critical shipping route for global oil supplies, pushing crude prices sharply higher.
Brent crude climbed above $109 a barrel Friday, up dramatically from roughly $70 before the conflict escalated. US crude also surged above $104 per barrel.
“Markets are adjusting to that reality,” Florian Ielpo at Lombard Odier Asset Management, told AP.
Big market movements in simple points
Stocks
The S&P 500 fell 0.8% as of 10:40 AM New York time
The Nasdaq 100 fell 1.2%
The Dow Jones Industrial Average fell 0.7%
The Stoxx Europe 600 fell 1.4%
The MSCI World Index fell 1%
Currencies
The Bloomberg Dollar Spot Index rose 0.4%
The euro fell 0.3% to $1.1629
The British pound fell 0.4% to $1.3347
The Japanese yen fell 0.2% to 158.69 per dollar
Cryptocurrencies
Bitcoin fell 2.8% to $79,136.29
Ether fell 3.6% to $2,214.12
Bonds
The yield on 10-year Treasuries advanced nine basis points to 4.57%
Germany’s 10-year yield advanced 10 basis points to 3.14%
Britain’s 10-year yield advanced 16 basis points to 5.15%
The yield on 2-year Treasuries advanced five basis points to 4.07%
The yield on 30-year Treasuries advanced eight basis points to 5.11%
Commodities
West Texas Intermediate crude rose 3.1% to $104.30 a barrel
Spot gold fell 2.1% to $4,555.47 an ounce