Market Turbulence: Tech Stocks Plunge Amid AI Concerns

Major stock indexes fell as technology shares, pressured by concerns over AI-related investments, dropped significantly. The U.S. dollar and Treasury yields ticked up while global central banks balanced interest rate policies amid mixed economic signals, stoking further market volatility.

Major stock indexes experienced a sharp downturn on Friday, primarily driven by declines in technology shares as investors grew cautious about artificial intelligence investments. Meanwhile, the U.S. dollar and Treasury yields edged higher following recent setbacks.

Earlier this week, Oracle highlighted substantial spending and released weak forecasts, contributing to the tech sector's struggles. A profit margin caution from Broadcom later compounded these challenges, leading to a 10.9% drop in its shares. As a result, the technology sector fell 2.5%, marking the largest decline among major S&P 500 sectors.

Despite the Federal Reserve's recent 25 basis points interest rate cut, optimism about further rate reductions in 2026 was tempered by ongoing concerns about a cooling labor market and persistent inflation. The Dow Jones, S&P 500, and Nasdaq Composite all saw significant losses, mirroring declines in global stock indexes.

(With inputs from agencies.)