On Friday, stock markets faced further setbacks as the S&P 500 declined by 1.1%, the Nasdaq tumbled 1.9%, and the Dow Jones decreased by over 300 points. This downturn extended the losses from the previous session, signaling another week of declines driven by concerns over AI stock valuations and the overall health of the U.S. economy.
The University of Michigan's consumer sentiment index fell to 50.3, the second-lowest level on record, reflecting growing consumer apprehension about the potential economic repercussions of a government shutdown. Additionally, data released earlier in the week indicated a cooling labor market.
Technology stocks were hit the hardest, followed by consumer discretionary sectors, whereas consumer staples and energy showed better performance. Nvidia saw a 4.1% slip, its fourth consecutive day of losses, while other major companies also experienced declines. Amazon fell by 1.3%, Meta by 2.4%, Alphabet by 2.8%, Broadcom by 4%, and Oracle by 3.6%. Tesla's shares decreased by 3.8% following shareholder approval of Elon Musk's potential $1 trillion compensation package.
For the week, the S&P 500 recorded a 1.8% decrease, the Dow Jones dropped by 1.4%, and the Nasdaq fell by 2.8%.
