AI Selloff Drags Nasdaq to Steep Weekly Decline Amid Market Concerns

Major stock indexes faced sharp declines, with the Nasdaq heading for its largest weekly drop since March amid concerns over the sustainability of the rally in artificial intelligence shares. Meanwhile, the Financial Times reported warnings from Nvidia's CEO about China surpassing the U.S. in the AI race.

Major stock indexes faced pronounced declines on Friday, placing the Nasdaq on track for its most significant weekly percentage drop since March. Investor apprehensions center around the continued rally of artificial intelligence stocks, while U.S. Treasury yields experienced a further decrease.

Stocks related to semiconductors and technology were hit the hardest, with an index of semiconductors dropping by 4.5% on Friday. Despite these recent losses, the Nasdaq has seen over a 50% rise since the announcement of sweeping tariffs by U.S. President Trump in April. The concern surrounding this downturn includes AI selloffs alongside comments on China's competitive AI advancements.

Nvidia's CEO expressed concerns regarding China's potential to surpass the U.S. in the AI sector, dampening market optimism which had previously elevated stocks to historic heights. Amid these developments, Bitcoin and other major indices, including the Dow and S&P 500, also saw declines. In related events, the U.S. Treasury yields dropped slightly, and oil prices rose moderately.

(With inputs from agencies.)