US stocks ended the week with sharp losses on Friday, as a technology sell-off and rising oil prices unsettled investors. The S&P 500 fell 1.1%, while the Nasdaq Composite dropped 2.1%, marking their weakest weekly performance since June. The Dow Jones Industrial Average declined 0.3%.
Chipmakers led the downturn, with Micron Technology, AMD, Broadcom and Intel recording significant losses. Investors are increasingly questioning whether heavy spending on artificial intelligence will generate sufficient returns, particularly as borrowing costs rise.
Oil prices added to market concerns amid tensions in the Middle East and fears of supply disruptions. Brent crude climbed towards $110 a barrel, pushing US petrol prices higher and intensifying inflation pressures.
Federal Reserve Chair Kevin Warsh has emphasised the importance of price stability but has avoided signalling the central bank’s next interest-rate decision. Stronger-than-expected inflation data has raised concerns that rates could remain elevated or rise further.
With major technology companies preparing to report earnings, investors will look for evidence that AI-related spending can justify current valuations. The results could prove crucial in determining whether the technology-led market rally can regain momentum
