AI Anxiety and Inflation Jolt Wall Street: Tech Stocks Plunge
Wall Street experienced a sharp decline as technology stocks fell due to AI concerns and higher-than-expected inflation. Tariff uncertainties added to market volatility. Notable drops included Nvidia and Zscaler, while Netflix and Dell saw gains. The S&P 500 and Nasdaq are facing steep monthly declines.
In a dramatic turn of events on Wall Street, major indexes took a hit on Friday as AI apprehensions ruffled technology stocks, causing the Nasdaq and the S&P 500 to plummet toward their steepest monthly declines since March 2025. The downturn was compounded by unanticipated inflation figures that dented market sentiment.
Adding to the turbulence were tariff ambiguities following the U.S. Supreme Court's decision to rescind most duties imposed by U.S. President Donald Trump in 2025. In retaliation, Trump announced a temporary 10% global tariff that took effect this week. Nvidia saw a 2.8% decline after a previous session's substantial drop despite robust earnings, underscoring persistent risk aversion around AI investments.
The S&P 500's technology index fell 1.3%, and financial stocks dipped over 2% on Friday. The Dow dropped 632.36 points, with the Nasdaq and S&P 500 also seeing significant losses. This market shift occurred amidst UBS's reduced allocation to U.S. equities, citing high stock valuations and limited corporate sensitivity to global growth, as doubt hangs over AI's disruptive impact on varied sectors.
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