Highlights
Stock indexes dropped for a second day on Friday as earnings fueled fears that the AI trade has been overdone. That spurred more rotation out of tech into more defensive sectors.
The Dow Jones industrial average lost 1.1 percent, the S&P 500 fell 1.8 percent and the Nasdaq plunged 2.9 percent. The Nasdaq suffered its day since June and its worst month since March 2025. Bond yields dropped in a flight to safety, the dollar index declined while WTI oil prices edged up.
Intel was the day’s worst performer, down a shocking 29 percent, after announcing disappointing guidance. Other chip stocks led the selloff in the AI trade, including Nvidia, Broadcom, and others. Crypto stocks had a terrible day after a big hack theft at Binance.
Despite the big index losses, the broader market was split with almost as many stocks higher as decliners. Best performers included energy on rising oil prices, media, discount store chains, consumer staples, and pharma.