Intel, Amazon and Alphabet came under pressure as investors questioned the returns on AI investment, while Treasury yields fell and energy stocks gained on rising oil-supply concerns.
Wall Street’s technology sell-off deepened on Friday as investors grew more uneasy about the scale of spending on artificial intelligence and the immediate returns it may deliver. According to Reuters and the Associated Press, chipmaker Intel and Amazon both came under pressure after results showed heavy cash use tied to AI investment, while Alphabet remained under strain after its earlier plunge on worries about negative cash flow and intensifying competition in search.
The rotation out of technology into safer assets helped push US government bonds higher, with Treasury yields falling as investors sought shelter from the turbulence. Reuters reported that the benchmark 10-year yield moved lower, while the two-year note also declined, a sign that traders were leaning towards expectations of easier financial conditions ahead. The move into bonds came even as oil prices climbed on renewed supply concerns in the Middle East.
Energy shares were among the few bright spots. Exxon Mobil and Chevron both advanced after reporting strong profits, supported by robust refining margins. Reuters said the gains reflected disruptions to supply linked to attacks on Russian refineries and broader fears about shipping risks in the region, including a tanker incident in the Strait of Hormuz that intensified anxiety over the security of crude flows.
Elsewhere, the market mood was broadly defensive. Bitcoin and other cryptocurrencies fell, while gold and silver also retreated as investors priced in the possibility that inflation pressures and higher energy costs could keep interest rates elevated for longer. The dollar was little changed overall, though the yen strengthened after the Bank of Japan left rates unchanged but nudged up its inflation outlook, adding another layer of caution to currency trading.
By midday in New York, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite were all sharply lower, with technology again leading the decline. Reuters said the global MSCI share index also dropped more than 1%, underscoring how quickly concern over AI spending has spread beyond individual companies into a broader reassessment of risk.
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