WASHINGTON (dpa-AFX) - Following the pullback seen in the previous session, stocks showed another move to the downside during trading on Friday. The major averages all moved notably lower, with the Nasdaq showing another significant decline.
The Nasdaq tumbled 361.70 points or 1.4 percent to 25,520.24, the S&P 500 slumped 76.08 points or 1 percent to 7,457.69 and the Dow slid 406.55 points or 0.8 percent to 52,146.42.
For the week, the Nasdaq plunged by 2.9 percent, the S&P 500 dove by 1.6 percent and the Dow tumbled by 0.9 percent.
The early weakness on Wall Street came as technology stocks saw continued weakness after turning in some of the market's worst performances on Thursday.
A steep drop by shares of Netflix (NFLX) weighed on the tech sector, with the streaming giant plunging by 7.3 percent.
Netflix came under pressure after reporting second quarter results roughly in line with estimates but providing disappointing third quarter guidance.
Concerns about valuations also contributed to the weakness among tech stocks ahead of earnings news from Alphabet (GOOGL), IBM Corp. (IBM), Tesla (TSLA) and Intel (INTC) next week.
'With sentiment brittle, investors are becoming increasingly wary of valuations in the AI and technology sector - most notably in the memory chip space where share prices have surged to unprecedented levels this year. AJ Bell investment director Russ Mould.
However, the weakness spread to the broader markets as the day progressed amid a sharp increase by the price of crude oil. U.S. crude oil futures surged well above $80 a barrel amid concerns about the escalating conflict in the Middle East.
Tehran launched strikes against several countries across the Gulf and wider region after the U.S. launched a wave of strikes against Iran for the sixth night in a row over control of the Strait of Hormuz.
Sector News
Airline stocks showed a substantial move to the downside amid the jump by the price of crude oil, resulting in a 3.5 percent nosedive by the NYSE Arca Airline Index.
Considerable weakness was also visible among brokerage stocks, as reflected by the 2.3 percent slump by the NYSE Arca Broker/Dealer Index.
Within the tech sector semiconductor stocks saw significant weakness, dragging the Philadelphia Semiconductor Index down by 1.6 percent to its lowest closing level in almost two months.
Housing, software and retail stocks also saw notable weakness, while oil producer and computer hardware stocks showed strong moves to the upside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index plummeted by 4 percent, while China's Shanghai Composite Index plunged by 3.1 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the French CAC 40 Index slid by 0.5 percent and the German DAX Index fell by 0.3 percent, although the U.K.'s FTSE 100 Index rose by 0.3 percent.
In the bond market, treasuries rebounded following the pullback seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, decreased by 2.8 basis points to 4.541 percent.
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