The S&P 500 (^GSPC -1.09%) fell 1.07% to 7,661 as AI-related software stocks faced a sharp reversal, while the Nasdaq Composite (^IXIC -2.15%) plummeted 2.15% to 26,140 on broad technology selling, and the Dow Jones Industrial Average (^DJI -0.34%) slipped 0.34% to 52,002, outperforming its peers to record its second straight weekly gain.
Gold prices rose 0.43% to $4,187.90 as of U.S. market close, the 10-Year Treasury yield declined to 5.10%, and Energy led sector gainers while Communication Services paced the decliners, followed by significant weakness in Technology.
Today’s biggest moves
Alcoa (AA +2.55%) shares jumped 5.80% on a third-quarter earnings beat, while Fox Factory (FOXF -13.30%) plummeted after announcing an unplanned CEO departure and a lower financial outlook.
Palantir Technologies (PLTR -7.22%) entered correction territory as software valuations pulled back, and Ford (F +0.97%) gained 2% as investors rotated into defensive blue chip names.
What this means for investors
Neocloud CoreWeave (CRWV -11.91%) ended the week down 25% after Goldman Sachs (GS -1.12%) released a note saying that hedge funds sold AI stocks at the second-fastest pace in over a year. The firm considered the move a “tactical rotation” away from smaller AI names (like CoreWeave) toward steadier AI names, such as the Magnificent Seven, or even non-AI stocks altogether.
Netflix (NFLX -2.87%) named former Disney (DIS -0.08%) chair Peter Rice its new chief content officer, but NFLX stock slid 3% anyway.
Lastly, Apple (AAPL +0.43%) announced that preorders for its foldable $1,999 iPhone Duo sold out within minutes today. While this looks like a promising development on the surface, some analysts and Apple experts think this may be more of a supply constraint than pure, unbridled demand for the next-gen iPhone.
Josh Kohn-Lindquist has positions in Netflix and Palantir Technologies. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, Netflix, Palantir Technologies, and Walt Disney. The Motley Fool has a disclosure policy.
