Wall Street retreated sharply on Friday as a sell-off in artificial intelligence-linked technology stocks and rising concerns over inflation triggered by elevated oil prices pushed major US indices lower from record highs, AP reported.The S&P 500 fell 1.1 per cent after hitting an all-time high a day earlier, while the Dow Jones Industrial Average dropped 408 points, or 0.8 per cent, in early trade.
The Nasdaq Composite declined 1.6 per cent as heavyweight technology stocks came under pressure.AI-linked stocks, which had powered much of the market rally this year, led the decline amid concerns that valuations had become overstretched following months of sharp gains.Nvidia, widely seen as the face of the AI-driven rally, dropped 3.6 per cent and emerged as the biggest drag on the S&P 500.
The stock had gained more than 26 per cent so far this year before Friday’s correction.“To us, it looks like markets have pushed into overbought territory,” Brian Jacobsen, chief economic strategist at Annex Wealth Management, said.“The path is unlikely to be smooth.
Periods like this call for discipline more than hope,” he added.Investor sentiment was also weighed down by rising oil prices and fears that the prolonged Iran conflict could further intensify global inflationary pressures.The Strait of Hormuz — a critical global energy shipping route — remains disrupted amid the ongoing conflict, pushing Brent crude prices up another 2.1 per cent to $107.97 per barrel.
