NEW YORK — The Nasdaq Composite declined on Friday as a broad sell-off in technology shares extended across global markets, with semiconductor stocks and other major technology companies leading losses amid investor concerns about artificial intelligence-related spending and the outlook for interest rates, according to market data and analysts.
The decline followed a week of weakness in technology stocks that spread from Wall Street to Asia and Europe. Reuters reported that major U.S. indexes ended lower or mixed during the week as investors reassessed valuations of high-growth technology companies while monitoring inflation data and expectations for monetary policy. Market participants also cited continued pressure on semiconductor manufacturers and companies tied to AI infrastructure spending.
Technology shares weighed on the Nasdaq after several large-cap companies retreated, offsetting strength in other sectors. Chipmakers remained under pressure despite recent earnings updates from some firms that pointed to continued demand for AI-related products, as investors focused on the costs associated with expanding computing infrastructure and the pace of corporate investment.
The broader decline was reflected overseas. Asian equity markets fell sharply, with technology-heavy benchmarks in South Korea and Japan recording notable losses before European markets also moved lower, according to Reuters. Investors said concerns about technology valuations and spending trends contributed to the synchronized retreat across global markets.
"There is definitely an element of expectations getting stretched, market positioning getting stretched, and valuations getting stretched," Amanda Agati, chief investment officer at PNC Asset Management Group, told Reuters, referring to the recent weakness in semiconductor shares.
Market participants also monitored developments in commodities and government bond markets. Oil prices eased as supply concerns moderated, while U.S. Treasury yields edged lower. Gold rose as investors sought assets perceived by some as relatively defensive during periods of market volatility, Reuters reported.
Analysts said investors were awaiting additional economic indicators and further comments from U.S. Federal Reserve officials for clues on the path of monetary policy. Recent inflation readings and expectations that borrowing costs could remain elevated have added to uncertainty surrounding highly valued technology companies and AI-related investments.
By the close of trading, the Nasdaq remained under pressure, while the Dow Jones Industrial Average and the S&P 500 showed comparatively greater resilience on some sessions because of gains in sectors outside technology. Trading activity continued to reflect caution across global equity markets, with investors closely watching upcoming economic data and corporate developments for further direction.
