How the market did
It was a rough Friday on Wall Street. The S&P 500, which tracks 500 of the largest companies in the US, fell about 1.1%. The Nasdaq Composite, which leans heavily on technology companies, dropped around 2.1%. The Dow Jones Industrial Average, a index of 30 large, well established American companies, slid just under 0.4%.
All three indexes are also down for the week, so this was not just a one day stumble. Investors ended the week in a cautious mood.
What moved stocks today
Two things appear to have rattled investors today. First, there are growing doubts about the AI trade. That means some investors are questioning whether the huge bets placed on artificial intelligence companies will pay off as quickly as hoped. When confidence in a hot theme cools, the stocks tied to it often fall fast, and that is what happened to tech today.
Second, oil prices have been climbing, and that worries investors. Higher oil prices push up costs for businesses and consumers alike, which can slow down spending and squeeze company profits. Reports also pointed to a spike in producer prices, which is what companies pay for the raw materials and services they use to make their products. Rising costs at that level often get passed on down the line.
Some investors moved money out of stocks and into US Treasury bonds, which are loans to the government seen as very safe. When stocks feel risky, Treasuries often become more attractive, and that is the pattern Reuters and Bloomberg both flagged today.