WASHINGTON (dpa-AFX) - After moving sharply lower early in the session, stocks saw even further downside over the course of the trading day on Friday. The major averages all moved notably lower, with the tech-heavy Nasdaq once again posting a particularly steep loss.
The major regained some ground going into the end of the day but remained sharply lower. The Nasdaq plunged 747.73 points or 2.9 percent to 25,437.00, the S&P 500 tumbled 140.32 points or 1.8 percent to 7,580.07 and the Dow slumped 572.25 points or 1.1 percent to 51,770.31.
With the pullback seen over the past two sessions, the major averages all moved to the downside for the week. The Nasdaq dove by 2 percent, the Dow slid by 0.9 percent and the S&P 500 fell by 0.6 percent.
The Nasdaq plunged to its lowest closing level in three months amid continued weakness among technology stocks due to renewed concerns about the artificial intelligence trade.
Intel (INTC) helped lead the tech sector lower, with the semiconductor giant plummeting by 29.2 percent to a six-month closing low.
The nosedive by Intel came after the company reported better than expected third quarter earnings but provided disappointing fourth quarter guidance.
Shares of Amazon (AMZN) also slumped by 1.4 percent after the online retail giant reported third quarter earnings and revenues that missed analyst estimates as well as negative free cash flow.
'The message from investors is becoming clearer: strong AI demand is no longer enough on its own,' said Daniela Hathorn, Senior Market Analyst at Capital.com. 'Companies need to demonstrate that substantial capital expenditure is translating into sustainable revenue growth, margins and free cash flow.'
She added, 'This could remain a significant headwind for the Nasdaq, particularly given the concentration of market gains in a handful of technology companies.'
Negative sentiment was also generated in reaction to a significant rebound by the price of crude oil amid supply concerns due to the ongoing conflict in the Middle East
On the other hand, energy stocks benefitted from the jump in crude oil prices, with Chevron (CVX) and Exxon Mobil (XOM) posting strong gains after reporting skyrocketing third quarter profits.
Sector News
Computer hardware stocks saw significant weakness amid the broader tech sell-off, dragging the NYSE Arca Computer Hardware Index down by 7.6 percent to its lowest closing level in almost three months.
Semiconductor and networking stocks also showed substantial moves to the downside, with the Philadelphia Semiconductor Index and the NYSE Arca Networking Index plunging by 7.2 percent and 5.2 percent, respectively.
Gold stocks also moved sharply lower along with the price of the precious metal, resulting in a 5.6 percent nosedive by the NYSE Arca Gold Bugs Index.
Airline, brokerage and software stocks also saw considerable weakness, while pharmaceutical and energy stocks bucked the downtrend.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Friday. Japan's Nikkei 225 Index tumbled by 2.1 percent and China's Shanghai Composite Index slumped by 1.4 percent, while Hong Kong's Hang Seng Index jumped by 1.5 percent.
The major European markets also ended the day mixed. While the U.K.'s FTSE 100 Index crept up by 0.1 percent, the French CAC 40 Index closed just below the unchanged line and the German DAX Index slid by 0.9 percent.
In the bond market, treasuries saw further upside following yesterday's notable advance. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slumped 6.0 basis points to 4.929 percent.
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