U.S. stocks fell at the opening bell on Friday as renewed concerns over the economic outlook and lofty technology valuations weighed on investor sentiment.
The Dow Jones Industrial Average dropped 115.3 points, or 0.3%, to 46,797.03, while the S&P 500 fell 24.1 points, or 0.4%, to 6,696.18. The Nasdaq Composite led declines, sliding 161.1 points, or 0.7%, to 22,892.92.
Traders said investors remain cautious following a volatile week for global equities, with persistent worries that AI-driven market gains have pushed valuations to unsustainable levels amid signs of slowing growth in the U.S. economy.
$750bn wiped off AI giants as tech sell-off deepens
More than $750 billion has been erased from the combined market value of the world’s biggest artificial intelligence stocks this week, according to analysis by the Financial Times.
The paper reported that the eight most valuable AI-related companies — including Nvidia, Meta, Palantir, and Oracle — have collectively lost three-quarters of a trillion dollars in market capitalisation since the end of last week, as investors reassess stretched valuations across the sector.
In early Wall Street trading, Nvidia was the biggest faller on the Dow Jones Industrial Average, down 2.2%, while Caterpillar followed closely with a 2.1% decline.
The sell-off comes amid a broader pullback in technology shares, triggered by fears that the AI boom may have overheated after a year of rapid gains and record valuations.
