Highlights
Stocks weakened again Friday to end a volatile week as oil prices rose and the selloff that hit the AI trade this week moved to other sectors while chipmakers and other AI shares fared better. The Dow Jones industrial average dropped 1.2 percent, the S&P fell 0.5 percent, and the Nasdaq eased 0.6 percent. Bond yields rose with oil prices and the dollar was slightly higher.
The risk-off trade predominated on Friday with rising oil prices on rising tensions in the Middle East after a US official was quoted saying the US was prepared for war to continue a year, and with Iran threatening more strikes on civilian targets if the US and Israel resume their attacks, as widely expected in November.
Stocks sensitive to rising energy prices including airlines and other transports were among the day’s worst performers.