US Stock Market Sees Decline
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.
AI Stocks Under Pressure
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.
Other Key Stock Movers
- Nvidia shares rose 0.3% on reports of increased production to meet demand from China.
- Lululemon Athletica stock soared 12% after raising its annual profit forecast.
- Cannabis stocks such as Canopy Growth and Tilray Brands rallied, with gains of 23% and 30% respectively, on reports of potential easing of restrictions on marijuana.
Economic Data and Market Trends
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 and Oil Prices
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.