Semiconductor stocks remained at the center of market weakness.
US STOCK MARKET TODAY: Fresh selling in computer chip makers and other companies that have benefited from the artificial intelligence boom sent global stock markets lower on Friday, while oil prices continued to rise amid the ongoing conflict with Iran.The S&P 500 fell 1.3%, putting it on track for its first weekly loss in three weeks and only its third losing week in the last 16 weeks. As of 9:35 a.m. ET, the Dow Jones Industrial Average was down 451 points, or 0.9%, while the Nasdaq Composite was down 2.1%.
AI-related stocks lead lower
Semiconductor stocks remained at the center of market weakness. Investors have been reducing their exposure to the sector for weeks amid concerns that valuations have become overvalued and that the current surge in demand for processors and memory chips may be unsustainable if artificial intelligence does not deliver expected gains in productivity and profitability.Nvidia was among the largest companies that negatively affected the S&P 500 index, as its shares fell by 3.4%.Applied Materials fell 6.9%, cutting its yearly gain to 103%, while Micron Technology fell 4.8%, cutting its advance for the year to 184%, according to the AP report.The sell-off extended across global markets. Taiwan’s benchmark index fell 6.5%, the Japanese market fell 4%, and Shanghai lost 3%, with Taiwan Semiconductor Manufacturing Company shares falling.
Declining 7.3%.South Korea’s stock market remained closed for a public holiday, avoiding losses on Friday. The country’s stock market has recently been one of the most volatile due to the heavy influence of Samsung Electronics and SK Hynix. Over the past week alone, the Kospi in Seoul recorded gains of 6.2% in one session, but also recorded declines of 6.4% and 8.9% in two other trading days.Wall Street was also pressured by earnings-related declines in many stocks.
This contrasts with much of the previous part of the week, when companies like Goldman Sachs and BlackRock rose after reporting stronger-than-expected spring quarter earnings.Netflix shares fell 10.9% after the company’s latest quarterly revenue came in slightly below analyst estimates, despite recording profits higher than expectations. Its expectations for summer quarter revenues and profits were lower than market expectations.Intuitive Surgical, which makes robotic surgical systems, fell 10.8% even after reporting better-than-expected quarterly results. Analysts attributed this decline to concerns that the growth of procedures may slow after the end of enhanced tax credits that reduced health insurance costs for many beneficiaries of the Affordable Care Act.Shares of Elon Musk’s SpaceX fell 6.2%, hitting their lowest level since the stock began trading on the Nasdaq a little more than a month ago.
The company, which has an xAI business, has also been exposed to the volatility surrounding AI-related stocks. SpaceX on Thursday canceled a test launch of its Starship rocket just before liftoff after several engines failed to ignite, canceling the launch amid large clouds of smoke and steam.The rise in oil prices has increased pressure on stock markets.Brent crude, the global benchmark, rose 2.9% to $86.70 a barrel, compared to about $76 the previous week.Early Friday, the United States expanded its air campaign against Iran by targeting additional bridges and bringing down a tower at a major Iranian port. The strikes formed part of President Donald Trump’s efforts to increase pressure on Tehran to ease its control over the Strait of Hormuz.Oil prices rose to their highest level in a month amid concerns that the conflict with Iran may continue to disrupt tanker traffic through the Strait of Hormuz, affecting the movement of crude oil from the Persian Gulf to markets around the world.
