Khaberni - The financial and technology sectors were heavily impacted on Friday; due to ongoing concerns among investors, putting American stocks on track for their largest monthly decline since last year.
The three major indices ended the trading sessions with sharp declines; recording substantial weekly losses, with the Dow Jones Industrial Average logging its biggest weekly decline since November. The selling was driven by uncertainties about costs and disruptions related to artificial intelligence, and renewed uncertainty over tariffs and escalating geopolitical tensions.
Ryan Detrick, an analyst at Carson Group, said, "At the end of February, we are reminded that there are still some vulnerabilities... and what added to today’s weakness was the high inflation data, which could lead to the Federal Reserve taking a more accommodative monetary stance later this year."
He added, "February was tough, but American companies are expecting an increase in revenues by more than 14 percent in the fourth quarter."
He added, "The fact is that revenues drive long-term stock gains, and this was an impressive earnings season."
The financial sector stocks declined following sector concerns after reports that Barclays and some other banks might face potential losses related to the collapse of the British mortgage financing company Market Financial Solutions.
Technology company stocks continued to press on the indices, and ongoing AI concerns led to declines in chip and software company stocks throughout the day.
The sectors representing traditional safe havens, such as basic consumer goods, healthcare, and utilities were the best performers in the session.
According to preliminary data, the Standard and Poor's 500 index dropped by 30.49 points or 0.44 percent to close at 6878.91 points, while the Nasdaq Composite index fell by 204.74 points or 0.92 percent to 22673.65 points. Meanwhile, the Dow Jones Industrial Average fell by 521.69 points or 1.05 percent to close at 48977.51 points.
NVIDIA continued to decline despite its strong revenues, indicating ongoing concerns about emerging artificial intelligence technology.
Netflix stocks surged after investors welcomed its decision to withdraw from the conflict over Warner Bros. Discovery, whose stocks declined following this news.
