US Stocks Fall as Tech Shares Struggle and Oil Prices Rise

Photo: Oleg Yunakov / Wikimedia Commons (CC BY-SA 4.0) US stocks declined on Friday, with the Dow Jones Industrial Average falling 1%, the S&P 500 down 0.6%, and the Nasdaq Composite dropping 0.3%. This decline follows a steep sell-off in technology stocks, as concerns about rising financing costs weighed heavily on investor sentiment.Oil prices climbed amid escalating tensions in the Middle East, with West Texas Intermediate surging to $100.90 per barrel and Brent crude reaching $114.Rising oil prices often contribute to market unease and inflation fears.Investors were particularly concerned about the tech sector, as many big-tech shares, including Microsoft and Meta, remained under pressure. Ed Yardeni, president of Yardeni Research, described the AI trade as a "bubble" but noted that some cooling off could be positive for the market, stating, "Taking some air out of the AI bubble is a good thing."In the bond markets, the yield on the 10-year Treasury note rose slightly to 4.97% after a sharp drop on Thursday.The yields indicate a trend of investors favoring safer assets amidst market uncertainty.SpaceX shares gained 1% in premarket trading following a double upgrade from PhillipCapital, which raised its price target significantly, citing strong performance in its AI business. Meanwhile, shares of telecom companies fell in premarket trading as investors reacted to reports of SpaceX’s plans to acquire cell sites.The market's performance this week presented a split picture: while the Dow is on track for a third consecutive week of gains, the Nasdaq is poised to register its second straight week of losses, reflecting the volatility in tech stocks.Sources CNBCYahoo Finance