Wall Street just got a reality check.
The Nasdaq took a solid hit on Friday, dropping nearly 3 percent. The broader market followed, with the S&P 500 and Dow also finishing in the red.
Big tech and chip stocks led the slide after some disappointing earnings and growing worries about how much companies are spending on AI. Intel had a particularly rough day.
Markets do this from time to time. One day everything feels unstoppable, the next day investors hit the brakes. History shows these dips rarely last forever, but they sure make the ride more interesting.
Anyone else checking their portfolio with one eye closed this weekend?
Looking ahead to Monday, the tech sector is likely to open under pressure as traders continue digesting those earnings and the broader AI spending concerns. Chipmakers and the biggest AI-linked names could see more volatility early in the session, especially if overnight futures stay soft. That said, sharp drops like Friday’s often bring in buyers looking for bargains, so a modest bounce in tech is possible if the mood improves. Either way, expect the first trading day of the new week to be lively rather than quiet.
$Invesco QQQ(QQQ)$ $Intel(INTC)$ $iShares Semiconductor ETF(SOXX)$ $NVIDIA(NVDA)$
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