It was a bumpy week for U.S. markets, with a sharp AI-driven tech selloff colliding with rising oil prices to leave investors uneasy heading into the weekend.
The Dow Jones Industrial Average fell about 1.2 percent on Friday to close near 52,215, while the Nasdaq Composite slipped about 0.2 percent and the S&P 500 dropped roughly 0.5 percent. Despite the Friday decline, the Dow still finished the week higher, its third straight weekly gain, while the Nasdaq posted a second consecutive weekly loss. The selling was broad, with declining stocks outpacing advancing ones by a wide margin on the New York Stock Exchange, and nearly three out of every four S&P 500 companies ended the day in the red. Chipmakers held up relatively well after a steep selloff earlier in the week, with the Philadelphia Semiconductor Index edging higher.
Energy was the clear bright spot. Oil prices jumped as fresh attacks attributed to Houthi forces near Saudi Arabia pushed crude to its highest settlement since the spring, reviving concerns about the stability of global energy supply at a moment when the broader supply chain is already under strain. The jump in oil also pushed up inflation expectations, with one-year expectations rising to 4.7 percent and five-year expectations to 3.5 percent, and sent Treasury yields back up as investors weighed the prospect of higher prices working their way through the economy.
Individual stocks told their own stories. Shares of Kering, the luxury group that owns Gucci and Saint Laurent, tumbled more than 12 percent after a disappointing third-quarter earnings report. RingCentral jumped after beating earnings expectations and raising its full-year guidance, while Bloom Energy fell sharply despite beating estimates, as investors focused on the fuel-cell maker's negative cash flow and heavy capital spending. Taiwan's stock market, meanwhile, was closed for the day as Super Typhoon Champi approached the island.
Watch oil prices and Middle East developments closely next week, along with a fresh wave of corporate earnings that will test whether the AI spending story stabilizes or sours further.
Why did oil prices rise this week?
Crude climbed after attacks attributed to Houthi forces near Saudi Arabia raised concerns about Middle East energy supply.
Did the Dow end the week up or down?
Despite falling on Friday, the Dow still finished the week higher, marking its third straight weekly gain.