The US stock market experienced a decline on Friday, with key indices such as the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average falling by 1.3%, 1.9%, and 0.6% respectively.
The decline was largely driven by artificial intelligence (AI) stocks, which came under pressure after Broadcom released a weak sales forecast. This has raised concerns about an AI bubble in the market. Broadcom shares tumbled 11%, while Advanced Micro Devices and Oracle lost 1% and 5.8% respectively.
The US Federal Reserve reduced interest rates by 25 basis points on Wednesday, but signaled caution on additional cuts in 2026. US jobless claims rose by the most in nearly 4-1/2 years, reversing the sharp drop seen in the previous week.
Gold prices gained 1% to $4,327.31 per ounce, bolstered by a weaker US dollar and high safe-haven demand. Oil prices remained stable near their lowest closing point in nearly two months, with Brent crude trading marginally above $61 per barrel.
The market is closely watching the crude oil prices, as concerns about a global oversupply continue to weigh on the market. The bullion market is also being monitored, as investors seek safe-haven assets amid geopolitical turbulence.
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