Nasdaq Falls for Second Day as AI Spending Fears and Tariffs Hit US Stocks

TLDR

• The Dow rose 0.5% on Friday, while the S&P 500 barely held flat and the Nasdaq fell 0.6%
• All three major indexes posted weekly losses, with the Nasdaq down 2% for the week
• The “Magnificent Seven” stocks lost nearly $800 billion in market value on Thursday over AI spending concerns
• New US tariffs of 10%–12.5% on most imports went into effect overnight
• Intel shares fell nearly 8% despite beating Wall Street earnings expectations

A turbulent week on Wall Street ended on a mixed note Friday, with stocks struggling to recover from a sharp sell-off the day before.

The Dow Jones Industrial Average closed up 235 points, or about 0.5%. The S&P 500 edged just above flat. The Nasdaq Composite dropped 0.6%, weighed down by continued pressure on tech stocks.

Despite the Friday gains in the Dow, all three major indexes finished the week in the red. The Nasdaq led declines with a 2% weekly drop.

AI Spending Fears Hit Tech Hard

Thursday’s sell-off was driven by concerns over artificial intelligence spending. The “Magnificent Seven” group of mega-cap tech stocks lost nearly $800 billion in combined market value in a single session.

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