Wall Street key indices fell on Friday as artificial intelligence stocks came under pressure after Broadcom’s weak sales forecast fueled concerns about an AI bubble.
As of 11:45 A.M. Eastern Time, the S&P 500 fell 1.3%, the Nasdaq Composite shed 1.9%, and the Dow Jones Industrial Average lost 0.6%.
At 9:47 a.m. ET, the Dow Jones Industrial Average rose 154.56 points, or 0.31%, to 48,856.46, the S&P 500 lost 12.58 points, or 0.18%, to 6,888.92 and the Nasdaq Composite lost 119.55 points, or 0.51%, to 23,478.83.
The US Federal Reserve on Wednesday reduced interest rates by 25 basis points for the third time this year, but signalled caution on additional cuts in 2026.
On the economic data front, US jobless claims rose by the most in nearly 4-1/2 years last week, reversing the sharp drop seen in the previous week.
Key Stock Movers
Broadcom shares tumbled 11% after the chipmaker warned of slimmer future margins on its AI system sales.
Advanced Micro Devices stock lost 1%.
Oracle stock extended its fall on Friday slipping by 5.8%. The cloud company recorded its biggest daily drop since January in the previous session.
Nvidia shares rose 0.3% after a report said the AI chip giant is evaluating a hike in H200 chip production to meet robust demand from China.
Lululemon Athletica stock soared 12% after the apparel maker raised its annual profit forecast.
Cannabis stocks rallied after a report said US President Donald Trump was looking to cut restrictions on marijuana through a planned order.
Canopy Growth climbed 23% and Tilray Brands surged 30%.
Bullion Market
Gold prices gained on Friday, bolstered by a weaker US dollar and high safe-haven demand prompted by geopolitical turbulence.
At 1248 GMT, spot gold rose 1% to $4,327.31 per ounce. US gold futures gained 1.2% to $4,363.20.
Among other metals, spot silver rose 0.8% to $64.09 per ounce, platinum surged 3.2% at $1,750.35, and palladium climbed 2.6% to $1,523.10.
Crude Oil
On Friday, oil prices remained stable near their lowest closing point in nearly two months. This stagnation occurred as market concerns regarding a global oversupply counteracted the general bullish sentiment observed across broader financial markets.
The persistent anxiety over excess supply has been a primary driver, pushing crude prices toward the lower boundary of the trading range established since mid-October, with Brent futures slowly trending toward the $60 per barrel mark.
Brent crude traded marginally above $61, reversing earlier slight gains.