U.S. stocks tumbled Friday as a sell-off in AI-linked shares and rising oil prices pulled major indexes from record highs. The S&P 500 fell 1.1%, the Dow lost 408 points (0.8%), and the Nasdaq dropped 1.6% in early trading. Nvidia, the chipmaker at the center of the AI boom, slid 3.6% and was the biggest drag on the S&P 500 despite a year‑to‑date gain of more than 26%.
Broader technology shares reversed course after months of meteoric rises, with analysts saying markets may have pushed into “overbought territory.” Investors were also spooked by a fresh jump in crude prices amid the ongoing war with Iran. The yield on the 10‑year Treasury climbed to 4.56% from 4.47%, reflecting growing worries that higher energy costs could fan inflation and tie the Federal Reserve’s hands.
The sell‑off spread globally, with South Korea’s Kospi plunging 6.1% after briefly topping 8,000 for the first time. “If nothing else this should be a shot across the bow for how volatility works both ways,” said BTIG chief market technician Jonathan Krinsky.