AI Anxieties Impact Wall Street: Tech Stocks Tumble Amid Economic Uncertainty

The main indexes on Wall Street prepared for a lower open on Friday as continuing concerns over AI's impact pressured tech stocks. The Nasdaq experienced its most significant monthly drop since March 2025, with inflation data further affecting investor sentiment.

This month, technology stocks saw selling pressure due to apprehensions over high valuations and uncertain returns from significant AI investments by major tech companies. Additional market volatility arose after the U.S. Supreme Court nullified most tariffs imposed by President Trump in 2025, prompting him to implement a temporary global tariff of 10%.

Amidst this, Nvidia's shares decreased by 1.5% pre-market following a 5% loss in the previous session despite promising earnings. The Dow Jones regained its footing with ten months of gains. In contrast, the Nasdaq recorded 17 sessions below its 50-day moving average, viewed as an indicator of intermediate-term trends.