Market Turbulence: AI Stocks Drop Amid Rising Treasury Yields

Wall Street indices declined as investors shifted focus from technology due to concerns about an AI bubble and rising U.S. Treasury yields. The Federal Reserve's stance against easing monetary policy contributed to market unease. Broadcom and Oracle's negative outlooks on AI investments compounded these concerns.

Wall Street's major indices saw a downturn on Friday, as investors exited technology stocks amidst growing concerns over an AI bubble and the impact of rising U.S. Treasury yields. This unease was exacerbated after a faction of Federal Reserve officials criticized easing monetary policies.

Broadcom's shares suffered a hit following the chipmaker's warning about slimmer future margins, reflecting worries over the profitability of AI investments. Oracle also faced a near 11% sell-off due to a weak financial forecast, further dragging on market sentiment in the technology sector.

The slump affected broader stock market indices, with the S&P 500 and Nasdaq Composite both recording significant losses. Meanwhile, investors remained cautiously optimistic, awaiting the Labor Department's key reports on nonfarm payrolls and consumer inflation data in the coming week to gauge economic health.

(With inputs from agencies.)