U.S. stocks closed lower Friday, with technology shares leading declines as investors grew wary of heavy spending tied to artificial intelligence.
The Dow Jones Industrial Average fell 245.96 points, or 0.51 percent, to 48,458.05. The S&P 500 dropped 73.59 points, or 1.07 percent, to 6,827.41, while the Nasdaq Composite tumbled 398.69 points, or 1.69 percent, to 23,195.17.
Six of the 11 primary S&P 500 sectors finished in negative territory, with technology down 2.87 percent and energy off 0.93 percent. Consumer staples and health care posted gains of 0.93 percent and 0.3 percent, respectively.
Broadcom plunged 11.43 percent despite stronger‑than‑expected quarterly earnings, as investors focused on its elevated capital spending and questioned near‑term profitability from AI investments. Nvidia, AMD, Palantir Technologies and Micron Technology also lost ground.
“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.”
One bright spot came from Lululemon, which surged 9.6 percent after announcing 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, adding modest pressure on growth‑sensitive equities.
Despite weakness in large‑cap technology, small‑cap stocks outperformed following the Federal Reserve’s latest rate cut. The Russell 2000 gained nearly 2 percent for the week, hitting multiple record highs. Analysts at BTIG said lower borrowing costs are expected to benefit smaller, rate‑sensitive companies.