In brief
In a second straight week of steep losses, the Dow, S&P 500, and Nasdaq dropped 1‑3 percent after Amazon and Alphabet missed earnings expectations, sparking a rout in technology and semiconductor shares. Oil prices rose as Fed officials reiterated a tough stance on inflation. The slide extended to Intel, SanDisk and other tech names, while energy and consumer staples led the few gains. Fed leaders Alberto Musalem and Tom Barkin warned that higher borrowing costs are still needed, reinforcing a hawkish tone.
U.S. stocks fell sharply on Friday, marking a second week of steep losses, after Amazon and Alphabet reported disappointing quarterly results that reignited concerns about the sustainability of massive AI capital spending.
Technology and Semiconductor Slide
The Dow Jones Industrial Average fell 572.25 points to 51,770.31, the S&P 500 dropped 140.32 points to 7,580.07, and the Nasdaq composite plunged 747.73 points to 25,437, the largest sector decline of the day coming from technology, which fell 4.24 percent.
Amazon shares slipped 1.41 percent, while Alphabet extended a sharp downtrend that was the steepest single‑day percentage drop in more than two decades.
Intel lost 28.58 percent after a fourth‑quarter revenue outlook fell well short of estimates, and data‑storage firm SanDisk plunged 13.47 percent despite beating earnings forecasts.
Oil Prices and Fed Sentiment Amplify Sell‑off
Crude oil futures gained more than 2 percent, with Brent crude at $117.64 per barrel and West Texas Intermediate at $104.12 per barrel, stoking head‑line inflation worries.
Federal Reserve Bank of St. Louis President Alberto Musalem said inflation remains excessively high and broad‑based, indicating the central bank must act soon. The key question is the pace and extent of future policy shifts.
"Inflation remains excessively high and broad‑based," said Musalem.
Fed Bank of Richmond President Tom Barkin stated that monetary policy remains pointed toward higher borrowing costs to rein in persistent inflation, highlighting the firm demand backdrop.
"Policy remains pointed toward higher borrowing costs," Barkin said.
Energy and consumer staples were the only sectors to climb, up 1.91 percent and 1.38 percent respectively, as investors looked for refuge amid the tech rout.
