Wall Street Declines as Technology Stocks Lead Losses; Nasdaq Drops 1.6%

According to recent U.S. trading reports, American stocks saw a significant decline during Friday's session, driven by a wave of selling from major technology companies, which pressured key indices and prompted investors to trim their positions after a series of record highs.

The Nasdaq 100 was the most affected, dropping by as much as 1.6% after Broadcom's shares fell nearly 10% following the company’s lower-than-expected sales forecasts for AI chips, despite exceeding expectations in its fourth-quarter results. The S&P 500 fell by 0.6% after nearing new record levels, while the Dow Jones decreased by 0.3% after reaching a historic peak during the session.

The pressures on the tech sector came amid concerns about profit margins and the growth pace of AI stocks, despite ongoing support from the recent Federal Reserve interest rate cuts. Caution increased following comments from the President of the Cleveland Federal Reserve, who indicated a preference for maintaining a tighter monetary policy to control inflation.

On the other hand, shares of Lululemon surged by 10% after the company raised its full-year guidance and announced the departure of its CEO in January, providing a temporary boost to the retail sector.

Throughout the week, the indices showed mixed performance:

• S&P 500: down 0.2%
• Dow Jones: up about 2%
• Nasdaq: down 1%

These movements reflect a rebalancing in the markets, as investors monitor the trajectory of technology amid competition in the AI sector and the impact of Federal Reserve decisions going forward.