Stock market today: US stocks edge lower as AI-fueled tech rally stalls
US stocks moved slightly lower on Friday following a sharp reversal in tech stocks on Thursday.
The AI-fueled tech rally showed signs of exhaustion, with the stalwart Nvidia experiencing a near 7% swing in Thursday's trading session, rising as much as 3% before it finished the day lower by 3.5%.
Other AI tech darlings saw sharp reversals and moved lower on Thursday, with those losses spilling over into Friday's trading session.
Shares of Nvidia were down an additional 2% in early Friday trades, while Dell, Broadcom, and Super Micro Computer were down between 1% and 2%.
With earnings season over, investors will focus on economic data releases next week, including US retail sales for May, industrial production, jobless claims, and a slew of speeches from top Federal Reserve officials.
A recent uptick in jobless claims to the highest level since last August, combined with a sharp downturn in housing starts has some worried that recessionary cracks are beginning to form in the economy.
"The May slowdown in housing starts, notably single-family, is not a one-off. There is rising inventory and a perceived drop in traffic that is recessionary in its level," GlobalData TS Lombard said on Thursday.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:
- S&P 500: 5,471.07, down 0.05%
- Dow Jones Industrial Average: 39,173.92, up 0.1% (+28.84 points)
- Nasdaq composite: 17,706.92, down 0.08%
Here's what else is going on today:
- America's 'cardboard-box recession' is finally over, according to Bank of America.
- These four US regions will likely see big electricity bill increases this summer, according to the EIA.
- The US debt will soar to $56 trillion in the next 10 years as government spending continues to outpace revenues, according to the CBO.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil rose 0.26% to $81.50 a barrel. Brent crude, the international benchmark, was higher by 0.21% to $85.89 a barrel.
- Gold edged higher by 0.30% to $2,375.50 per ounce.
- The 10-year Treasury yield dropped three basis points to 4.23%.
- Bitcoin dropped 1.65% to $63,777.