Tech Stocks Drag Down Markets As Mixed Economic Data Unsettles Investors

Wall Street closed lower as mixed economic data and a subdued earnings season rattled investors. The technology sector led the downturn, with significant losses for major companies like Nvidia and Texas Instruments. Investors remain cautious, anticipatory of upcoming Federal Reserve actions and potential trade tariffs proposed by the Trump administration.

Wall Street's main indexes closed lower on Friday as investors were unsettled by mixed economic data and earnings reports. The technology sector, highlighted by Nvidia's 3.1% drop, significantly pulled the markets down after recent rallies.

The dip comes amid stronger-than-expected housing market data but slowing business activity, as investors prepare for a week rich with economic releases and the Federal Reserve meeting. Despite policy uncertainty from President Trump's administration, investors anticipate the Fed maintaining borrowing costs.

Major index declines followed a week of advances, with the Dow, S&P 500, and Nasdaq showing significant prior growth. Meanwhile, talks of proposed tariffs could influence market dynamics further, intensifying inflation fears and potential Fed rate adjustments.

(With inputs from agencies.)