Stock Market Stumbles: Tech Giants Lead the Decline

U.S. stocks fell as Treasury yields rose, leading S&P 500 and Nasdaq to more than two-week lows. Broadcom's results fueled AI bubble worries. Policymakers expressed inflation concerns, impacting market sentiment. The decline was led by tech stocks, with major indexes experiencing substantial losses.

U.S. stocks took a hit on Friday, dragging the S&P 500 and the Nasdaq to their lowest levels in over two weeks. The drop was prompted by rising Treasury yields and hawkish comments from policymakers, sparking fears of an AI-induced market bubble, particularly following latest Broadcom results.

Treasury yields spiked as a faction of policymakers raised alarms over persistently high inflation, influencing their opposition to recent Fed interest rate cuts. Upcoming Labor Department reports are anticipated to shed more light on economic health, potentially influencing future market moves.

Broadcom's warning on shrinking future margins sent its shares plummeting 11%, triggering worries about AI investment profitability. Key tech stocks, such as Nvidia, also ended the day poorly, heavily impacting the overall chips index. The Dow, S&P 500, and Nasdaq all recorded significant losses amid these concerns.

(With inputs from agencies.)