Tech selloff caps worst week since June as Brent oil nears $110
Tech stocks fell sharply Friday, ending their worst week since June, Reuters and The Wall Street Journal reported. The Nasdaq fell 2.1% for the day and 4.5% for the week, The Associated Press and The Wall Street Journal reported. Brent crude oil touched $110 a barrel before closing at $109.86, its highest level since May, NBC News and CNBC reported.
Tech stocks fell sharply Friday, ending their worst week since June, Reuters and The Wall Street Journal reported. The S&P 500 closed at 7,659.44, the Nasdaq at 26,140.03 and the Dow Jones Industrial Average at 52,002.41, The Associated Press and Reuters reported. That left the S&P 500 down 1.1%, the Nasdaq down 2.1% and the Dow down 0.3% for the day, AP and The Wall Street Journal reported.
For the week, the S&P 500 fell 1.9%, the Nasdaq lost 4.5% and the Dow rose 0.7%, AP reported. It was the worst week since June for the S&P 500 and the Nasdaq, AP and Reuters reported. The Nasdaq's weekly loss snapped a monthlong winning streak, Yahoo Finance reported.
Tech stocks shed more than $1 trillion in value Friday, NBC News reported. The Nasdaq 100 fell 2.5% and now sits about 7% below the record it set last week, NBC reported. The Philadelphia semiconductor index dropped 3.8%, its eighth straight daily loss and its longest losing streak since 2008, Reuters and NBC reported. CoreWeave fell 12%, bringing its loss over five sessions to about 25%, and Broadcom fell 4.5%, Reuters reported. Investors worry that debt-heavy AI infrastructure companies may not turn a profit in time to repay their debts, Reuters reported.
Oil added to the pressure. Brent crude hit $110 a barrel for the first time since May before settling at $109.86, up 3.7%, CNBC reported. U.S. crude rose 3.5% to $101.41, CNBC and NBC reported. CNBC tied the jump to Iran's escalating attacks in the Strait of Hormuz, Houthi missile fire at Saudi Arabia and Ukraine's vow to keep striking Russian refineries. At least nine tankers and cargo ships have come under attack in the strait since Sunday, CNBC reported.
"There is some fear in the market," said Rob Haworth, a senior investment strategist at U.S. Bank Wealth Management, according to Reuters. "High oil prices, in particular, tend to weigh on the price/earnings multiple of stocks," he said, Reuters reported.
Some money moved out of tech and into other parts of the market. Six of the S&P 500's 11 sector indexes rose, led by energy, Reuters reported. Investors also pared bets that the Federal Reserve will raise interest rates this month after comments from Fed Chair Kevin Warsh, The Wall Street Journal reported.
What we know: Stocks fell Friday as tech shares slid and Brent crude closed near $110, capping the worst week for tech since June.
What we don't: Whether the tech sell-off and the climb in oil prices will continue, and what the Fed will decide at its meeting later this month.
Where outlets agree Reuters, The Wall Street Journal and NBC News all report that a tech sell-off pulled stocks lower Friday as oil prices jumped.
Where they differ The outlets cited here report the same key facts so far.