US stocks declined on Friday, with the major indexes posting weekly losses led by declines in the semiconductor sector.
The Dow Jones Industrial Average (^DJI) fell by about 0.7%, while the S&P 500 (^GSPC) declined by 1%. The Nasdaq Composite (^IXIC) shed 1.4% following a downbeat day on Wall Street and the release of the world’s most powerful open AI model.
The S&P 500 dropped more than 1.5% for the week while the Nasdaq declined 2.9%. The Dow lost nearly 1% over the past five sessions.
A sell-off in chip stocks dampened sentiment on Friday as the PHLX Semiconductor Index (^SOX) entered a bear market. However, the sector closed off its session lows as investors bought the dip.
The market’s tech-driven rally from March lows has been put to the test as companies’ massive spending on artificial intelligence clouded optimism for the AI trade. Adding to AI jitters on Friday, Chinese AI startup Moonshot on Friday unveiled Kimi K3, a powerful open AI model that it says is the world’s largest, rivaling Anthropic’s frontier Fable model.
Netflix stock (NFLX), meanwhile, declined by 7% after the company’s third quarter revenue forecast disappointed the Street as the streaming giant battles a “dynamic and competitive” entertainment landscape.
A few smaller banks, including Truist Financial Corporation (TFC) and Fifth Third Bancorp (FITB), rounded out the week’s earnings docket, while the University of Michigan’s preliminary consumer sentiment reading showed Americans started to feel better about the economy as gas prices eased.