WASHINGTON (dpa-AFX) - After recovering from an early slump to end Thursday's session mostly higher, stocks showed a significant move back to the downside during trading on Friday. Technology stocks led the way lower, dragging the tech-heavy Nasdaq down to its lowest closing level in a month.
The Nasdaq ended the day off its lows of the session but still plunged 572.99 points or 2.1 percent to 26,140.03. The S&P 500 also slumped 84.62 points or 1.1 percent to 7,659.44, while the narrower Dow posted a more modest loss, falling 175.28 points or 0.3 percent to 52,002.41.
For the week, the Nasdaq plummeted by 4.5 percent and the S&P 500 tumbled by 2 percent, but the Dow increased by 0.7 percent.
A renewed sell-off among technology stocks weighed on the Nasdaq amid concerns about debt-fueled AI infrastructure spending.
Computer hardware stocks turned in some of the tech sector's worst performances, extending the nosedive seen over the past couple weeks, with the NYSE Arca Computer Hardware Index plummeting by 5.4 percent to a two-month closing low.
Semiconductor, networking and software also saw substantial weakness, contributing to the steep drop by the Nasdaq.
Outside of the tech sector, airline stocks moved sharply lower amid an extended surge by the price of crude oil, dragging the NYSE Arca Airline Index down by 3.2 percent.
Brokerage and biotechnology stocks also saw notable weakness, while energy stocks moved significantly higher along with the price of crude oil.
U.S. crude oil futures spiked back above $100 a barrel for the first time in a month as Iran has re-escalated its attacks in the Strait of Hormuz and the purported 'energy ceasefire' between Russia and Ukraine has seemingly unraveled.
On the U.S. economic front, a report released by the Federal Reserve showed industrial production in the U.S. increased by more than expected in the month of September.
The Fed said industrial production climbed by 0.7 percent in September following a revised 0.1 percent uptick in August.
Economists had expected industrial production to rise by 0.4 percent compared to the unchanged reading originally reported for the previous month.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index shot up by 1.4 percent, while Hong Kong's Hang Seng Index increased by 0.5 percent.
The major European markets have moved to the upside on the day. While the German DAX Index jumped by 1 percent, the U.K.'s FTSE 100 Index climbed by 0.4 percent and the French CAC 40 Index rose by 0.3 percent.
In the bond market, treasuries have shown a lack of direction following a recent rally. As a result, the yield on the benchmark ten-year note, which moves opposite of its, is down by 1.2 basis points at 5.075 percent.
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