New York [US], December 13: U.S. stocks finished lower on Friday, with technology shares extending sharp declines amid renewed investor concerns over potential over-investment in artificial intelligence (AI).
The Dow Jones Industrial Average dropped 245.96 points, or 0.51 percent, to 48,458.05. The S&P 500 sank 73.59 points, or 1.07 percent, to 6,827.41, while the Nasdaq Composite Index tumbled 398.69 points, or 1.69 percent, to 23,195.17.
Six of the 11 primary S&P 500 sectors ended in red, with technology and energy leading the declines at 2.87 percent and 0.93 percent, respectively. Consumer staples and health care were the best performers, rising 0.93 percent and 0.3 percent, respectively.
U.S. chipmaker Broadcom plunged 11.43 percent despite reporting better-than-expected fiscal fourth-quarter earnings late Thursday, as investors focused on the semiconductor giant's elevated capital spending plans and questioned the near-term profitability of AI-related investments. Nvidia, AMD, Palantir Technologies, and Micron Technology also posted losses on Friday.
"Today is a value-outperforms-growth day," said Jed Ellerbroek, portfolio manager at Argent Capital Management. "Investors are definitely skittish as it relates to AI -- not outright pessimistic, but just kind of cautious and nervous and hesitant."
Meanwhile, the fashion brand Lululemon provided one bright spot, surging 9.6 percent after announcing that its CEO Calvin McDonald will step down at the end of January 2026.
The U.S. 10-year Treasury yield rose to nearly 4.2 percent from 4.15 percent at Thursday's close, adding modest pressure on growth-sensitive equities.
Despite the weekly weakness in large-cap technology, small-cap stocks continued to outperform following the Fed's latest rate cut, with the Russell 2000 index gaining nearly 2 percent for the week and posting multiple record highs.
BTIG analysts attributed the strength to expectations that lower borrowing costs will benefit smaller, rate-sensitive companies.
Source: Xinhua News Agency
