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Or sign-in if you have an account.Traders work on the floor of the New York Stock Exchange during morning trading on June 4. Photo by Michael M. Santiago/Getty Images filesThe S&P 500’s longest weekly winning streak in four decades was stopped on Friday by the same cohort that’s powered the index’s yearlong advance — technology megacaps.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe Nasdaq 100 Index plunged three per cent at 12:22 p.m. in New York, putting the tech-heavy gauge on track for its biggest drop since October. Meanwhile, the S&P 500 Index fell 1.6 per cent, with the benchmark all-but-confirmed to miss out on a record 10th-straight week of gains, which would be the longest such stretch since 1985.In Toronto, the S&P/TSX Composite Index was down 600 points at 34,617.06 as of 1:53 p.m.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againThe shift out of technology names, particularly those tied to artificial intelligence, has defined the market over the last few sessions. A confluence of factors, including a weaker-than-expected forecast from Broadcom, has sapped enthusiasm for the technology that has been a driving force behind the bull market in recent years. Four of the 11 S&P 500 sectors advanced, led by consumer staples and healthcare stocks.“It’s clearly not sell the market day, it’s the leaders who were pretty extended are coming back,” said Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, who noted that there were a “couple of reasons” to sell including Broadcom Inc.’s earnings. “The excess positioning in those AI names is being unwound today and it’s moving into lesser owned areas of the market like staples, healthcare, utilities.”Defensive sectors — consumer staples, healthcare and utilities — gained on Friday, while information technology stocks slid four per cent. Meanwhile, UBS Group AG’s basket of AI winners fell 4.8 per cent, the gauge’s biggest drop since October. Super Micro Computer Inc., NuScale Power Corp. and ARM Holdings Plc were among the biggest decliners.“Tech stocks got way ahead of themselves and now it’s hard to justify buying these shares at these lofty valuations,” said Jeff Buchbinder, chief equity strategist at LPL Financial.Buchbinder said his firm downgraded their position on US tech shares this week from overweight to neutral. The firm added exposure to a mix of defensive and less volatile nooks in the market, including healthcare, utilities and consumer staples.“The AI dream isn’t dead. We’re just looking for this incredible run to cool off before adding more exposure to tech shares,” Buchbinder added.U.S. job growth topped all forecasts and the unemployment rate held steady in May. Data from the payrolls report provides the clearest sign yet that the labor market may be breaking out of a prolonged period of lackluster hiring, even as fears of AI-related job loss persist.To Thomas Simons, chief U.S. economist at Jefferies, the data is a “nail in the coffin” for interest-rate cuts this year. Treasury yields climbed after the report was released, and traders fully priced in a quarter-point rate hike by the Fed by December, according to data compiled by Bloomberg.“The economy is growing and evolving in such a way that there is almost no chance of a cut in 2026,” Simons wrote in a note to clients on Friday. “If energy prices correct to the downside and productivity gains lead to reduced inflation expectations in 2027, then the discussion of rate cuts can begin again.”Meanwhile, traders were also keeping an eye on the Middle East. The U.S. and Iran have made little progress in talks over an interim peace deal this week, with both nations seeing their worst clashes since the ceasefire began in April.Fighting between Israel and Hezbollah in Lebanon also continued, despite U.S. President Donald Trump’s insistence that the two sides would stop hostilities. Tehran has insisted on a ceasefire in Lebanon before accepting a deal that will extend a truce by two months and reopen the Strait of Hormuz.“The U.S. and Iran still seem headed for a détente/deal of some sort as neither side appears eager to escalate the conflict,” said Adam Crisafulli of Vital Knowledge.In terms of single-stock moves, Lululemon Athletica Inc. dropped 8.6 per cent after the company lowered its annual forecast due to deteriorating performance in North America.DocuSign Inc. fell 6.3 per cent after providing an in-line forecast for second-quarter revenue. Guidewire Software Inc. tumbled 9.9 per cent as the midpoint of its fourth-quarter subscription and support revenue forecast fell short of expectations.Mining stocks are falling on Friday along with metal prices after strong U.S. jobs data prompted traders to boost bets that the Federal Reserve will raise interest rates this year.The S&P 1500 Consumer Staples Index climbed as investors flock to the relative safe-haven group and take profits in AI and tech names.Fannie Mae and Freddie Mac common shares rose sharply at the open on Friday after President Trump said the two mortgage finance giants were probably worth US$1 trillion, though they subsequently erased much of those gains as skepticism mounted.Quantum computing stocks are down after Quantinuum Inc.’s initial public offering on Thursday.—With assistance from Felice Maranz. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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